Acetic Acid Weekly Report 11 Jan 2019

Weekly Price Trend: 07-01-2019 to 11-01-2019

• The above given graph focuses on the Acetic Acid price trend from 7^th Jan to 11^th Jan 2019. If we take a quick look at the above given weekly prices, it can be observed that prices remained extremely vulnerable for this week.
• With continuous fluctuation in crude values prices there has been considerable decline in domestic values.
• By end of this week, prices were assessed at the level of Rs.36/Kg for Kandla and for Mumbai port for bulk quantity.

Booking Scenario

INDIA& INTERNATIONAL 

• Domestic prices of Acetic acid assessed around Rs.36/Kg for Kandla and for Mumbai port of India. This week domestic prices have reduced by Rs.3/kg in compare to last week’s closing values.
• CIF India prices for Acetic Acid were assessed around USD 530-560/MT reduced by USD 20/MTS in compare to last week’s closing values.
• Impact of decline in the Methanol values has significantly affected the Acetic Acid prices in international market. Methanol values have decline by USD 1 and were assessed at the level of USD 233/MTS for this week.
• Crude prices remained volatile throughout this week. There has been rise decline in crude prices since December. The impact is seen all the major petrochemical prices. The experts believe it to be meltdown of some giant economies of the world.
• China is the major country Asia facing the huge slowdown in its economy. Oversupply with limited demand of petrochemical has been pushing the price to melt further.
• Experts do believe that now Brent and WTI are expected to trade between $60 and $70 a barrel by the second half of this year, unless a sharp global economic slowdown affects the outlook for global oil demand.
• While OPEC is expected to cut its output in 2019 in an attempt to balance the market, US production should maintain its upward momentum.
• Oil tripped on Friday amid concerns and apprehensions over the outlook for the global economy, but output cuts agreed by major exporters underpinned crude prices and kept markets on track for a strong weekly climb. 

PLANT NEWS

Acetic Acid unit shut down by YARACO for maintenance

• Yangzte River Acetyl Corp (YARACO) has shut down its Acetic Acid unit for maintenance turnaround. The unit was shut down last week as per annual maintenance schedule and will remain off-stream for around 4-5 weeks. The unit is likely to resume its production in the first week of February 2019.
• Unit is based at Chongqing province of China and has the production capacity of 4, 20,000 tonnes/year. 

1$: Rs. 70.49

Import Custom Ex. Rate USD/ INR: 71.25

Export Custom Ex. Rate USD/ INR: 69.55