Acetic Acid Weekly Report 10 July 2020
Weekly Price Trend: 06-07-2020 to 10-07-2020
- The above given graph focuses on the Acetic Acid price trend from 6th July to 10th July 2020. If we take a quick look at the above given weekly prices, it can be observed that prices reduced for this week.
- By end of the week prices were assessed at the level of Rs.25.5/Kg, with slight decline in values for this week.
Booking Scenario
INDIA& INTERNATIONAL
- Domestic prices of Acetic acid were assessed around Rs.25.5/Kg for Kandla and for Mumbai ports of India.
- CIF India prices for Acetic Acid were assessed around USD 380-400/MT for this week, reduced by USD 20/ MT for this week.
- UK-based petrochemical giant Ineos will acquire all of BP's petrochemicals business in Asia, the US and Europe, which last year produced 9.7 million mt of products, BP announced June 29.
- BP's PTA assets in Asia include a 2.35 million mt/year facility at Zhuhai in China, 540,000 mt/year plants at Merak in Indonesia and 760,000 mt/year plant at Taichung in Taiwan.
- While BP's decision to divest its Asian AA business to Ineos will likely have minimal impact on the market in the short term, the long-term impact for will hinge on which of BP's petrochemical businesses Ineos focuses on, which for the moment is unclear, sources said.
- "In Asia, there is an understanding among producers, even though they are competitors, to take turns shutting down their plants when prices get too low," an end-user said. "It's unclear whether Ineos will do the same, they may just want to maximize sales."
- Other market participants said there was also potential for joint ventures with Ineos to open up opportunities. Ineos, because of its unfamiliarity with the AA market in Asia, could opt to let a local JV partner market and export AA, sources said.
- BP's AA assets in Asia include the 420,000 mt/year Yangtze River Acetyls Co. and BP YPC Acetyls Company's 500,000 mt/year plants in China, Formosa BP Chemicals Corporation's 300,000 mt/year plant in Taiwan, BP Petronas Acetyls' 500,000 mt/year plant in Malaysia and Lotte BP's 650,000 mt/year AA and 400,000 mt/year VAM plants in South Korea.
- BP and China's Zhejiang Petroleum and Chemical Corporation also signed a memorandum of understanding last October to build and operate a new 1 million mt/year AA plant in Zhoushan in China. The status of the equally-owned JV is currently unclear.
- Global supply of AA, which is used in paints, adhesives and packaging, has lengthened during the coronavirus pandemic, with demand from the automotive sector in particular
1$: Rs. 75.20
Import Custom Ex. Rate USD/ INR: 76.40
Export Custom Ex. Rate USD/ INR: 74.70
