Acetic Acid Weekly Report 15 Sep 2018

Weekly Price Trend: 10-09-2018 to 14-09-2018

• The above given graph focuses on the Acetic Acid price trend from 10th Sept 2018 to 14th Sept 2018. If we take a quick look at the above given weekly prices, it can be observed that prices improved significantly 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.
• By end of this week, prices were assessed at the level of Rs.56/Kg for Kandla and Rs.55/Kg for Mumbai port for bulk quantity.

Booking Scenario

INDIA& INTERNATIONAL

• Domestic prices of Acetic acid assessed around Rs.56/Kg for Kandla and Rs,55/Kg for Mumbai port of India. Prices have remained vulnerable throughout this week.
• In last few weeks there has been significant fluctuation in crude values. Although the hike in values settled by end of the week.  Prices for petrochemicals continue to follow the crude prices trend.
• Traders are really feeling the heat of depreciating currency and are unable to make any guesses or make opinions about the falling rupee.
• CFR India prices were assessed in the range of USD 600-620/MT reduced by USD 20/MT in compare to last week’s closing values.
• Prices for Acetic Acid are also affected by Methanol prices in international market. There has been high variation in Methanol prices in India as well China market.
• Oil prices crossed the levels of USD80 by mid of the week, later it fell by more than 2% on Thursday. This hike was the highest in last four months. The international Energy Agency has already warned that the oil market is tightening at the moment and world oil demand would soon reach 100 million barrels per day (bpd) in the next three months, global economic risks were mounting.
• U.S. companies in China are being hurt by tariffs in the growing trade war between Washington and Beijing, according to a survey, prompting U.S. business lobbies to urge President Donald Trump's administration to reconsider its approach.
• The White House has invited Chinese officials to restart trade talks just as it prepares to escalate a trade war with China with tariffs on $200 billion worth of Chinese goods.
• The other major factor is the loss of Iranian oil to the market as refiners are cutting or halting purchase ahead of U.S. sanctions in November is also raising concerns about supply.
• All these factor has put an rigorous pressure on petrochemical industry and has led to hike in the prices of crucial petrochemical products.
• GNFC domestic manufacturer of Acetic Acid is selling at the rate of Rs.59/Kg.

1$ : Rs. 71.84
Import Custom Ex. Rate USD/ INR: 72.55
Export Custom Ex. Rate USD/ INR: 70.85