Acetic Acid Weekly Report 09 Dec 2017

Weekly Price Trend: 04-12-2017 to 08-12-2017

• The above given graph focuses on the Acetic Acid price trend from 4th Dec 2017 to 8th Dec Nov 2017. If we take a quick look at the above given weekly prices, it can be observed that there has been significant hike in domestic values.
• By end of this week, prices were assessed at the level of Rs.58-Kg for Kandla and for Mumbai port for bulk quantity.

Booking Scenario

INDIA& INTERNATIONAL

• Domestic prices of Acetic acid assessed around Rs.58/Kg for Kandla and Mumbai ports of India.
• Market has been at its all time high due to limited supply of the chemical. There has been noticeable variation in domestic values. With ongoing winter season there has been slowdown in supply of natural gas which in turn has led to slowdown in the production of Methanol and Acetic Acid.
• International prices were assessed at the level of CFR India USD 600-620/MTS, slightly increased 20/MTS in compare to last week’s closing values.
• During this winter season most of the major producers of Iran shut their unit either for maintenance or due to shortage in the supply of natural gas.
• There has been tightened supply of Acetic Acid in China market. Prices have been gaining in domestic market after long time. Inventories are now in China market. Like Iran Chinese government has asked manufacturers to slowdown production using natural gas. But here the concern is of increasing pollution.
• Crude oil prices remained mixed for this week. Oil rose on Thursday indicating that investors are doubtful of pushing the market lower in response to an unexpectedly large rise in U.S. stocks of refined products that has increased concern about the demand outlook.
• On Thursday, closing crude values have increased. WTI on NYME closed at $56.69/bbl; prices have increased by $0.73/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.98/bbl in compared to last trading and was assessed around $62.20/bbl.
• On Friday oil prices dipped as the U.S. dollar strengthened, although OPEC-led supply cuts are seen supporting markets going into next year.
• As per market players, Soaring U.S. output threatens to undermine efforts led by the OPEC and Russia to bring production and demand into balance following years of oversupply. The market suggests that the bull market is not as strong as earlier predicted. Oil prices saw a sharp 2.9 percent decline after the US published its inventory data. Analysts expect that oil prices to move in a price band of USD 45 to USD 60 for the calendar year 2018.

1$ : Rs. 64.46
Import Custom Ex. Rate USD/ INR: 65.40
Export Custom Ex. Rate USD/ INR: 63.70