Acetic Acid Weekly Report 13 Oct 2018

Weekly Price Trend: 08-10-2018 to 12-10-2018

• The above given graph focuses on the Acetic Acid price trend from 8th Oct 2018 to 12th Oct 2018. If we take a quick look at the above given weekly prices, it can be observed that prices remained volatile for this week.
• Prices for Acetic Acid remained vulnerable throughout this week. With continuous variability in crude values prices and depreciating currency has affected domestic market significantly. In compare to last week there has marginal rise in domestic prices.
• By end of this week, prices were assessed at the level of Rs.59/Kg for Kandla and for Mumbai port for bulk quantity.

Booking Scenario

INDIA& INTERNATIONAL

• Domestic prices of Acetic acid assessed around Rs.59/Kg for Kandla and for Mumbai port of India. Prices have remained vulnerable throughout this week.
• This week initially prices remained firm week in domestic market as the week proceeded further there was an upright increase in domestic values. The other major reason for this increase the hike in the values for Methanol in domestic market.
• CIF India prices for Acetic Acid were assessed around USD 690-710/MT with no change in compare to last week’s closing values.
• The soaring prices of Methanol in international market have affected the prices for Acetic acid. Moreover the upcoming sanctions by US along with the implications of winter season and plant turnarounds could fetch up the Acetic Acid values.
• Last week there was strong rally for crude prices and was expected to cross the mark of USD 100/bbl very soon. But this week scenario was totally different. Brent crossed the mark of $86/bbl on Tuesday , lowered in last two days on back of investors sell off in the trading.
• The main story driving the oil market remains the loss of Iranian crude exports ahead of the full renewal of U.S. sanctions on Nov. 4. That deadline is still frightening large over the market and could help push oil prices back up.
• All the major nations unanimously agree that with Iran sanctions, a large chunk of oil will be removed from the market. How strong its impact is beyond everybody’s imaginations.
• Emerging markets like India are really struggling with higher oil prices coupled with continuous currency depreciation.
• Indian Rupee has depreciated more than by 15% year-to-date. Higher crude oil prices, demand from defense and oil marketing firms have contributed to the latest bout of weakness. Rupee was overvalued on trade weighted real effective exchange rate.
• China market is also facing the heat of rise in crude prices and deprecation of its own currency. Further the trade tariffs with US will affect the Chinese economy in long run. To check its impact China’s Central Bank has cut down the reserve requirement ratios (RRRs) by one per cent from October 15 which will inject a net USD 109.2 billion in cash into the banking system

1$ : Rs. 73.54
Import Custom Ex. Rate USD/ INR: 74.60
Export Custom Ex. Rate USD/ INR: 72.90