Acetic Acid Weekly Report 17 January 2020

Weekly Price Trend: 13-01-2020 to 17-01-2020

• The above given graph focuses on the Acetic Acid price trend from 13^th Jan to 17^th Jan 2020. If we take a quick look at the above given weekly prices, it can be observed that prices remained variable in this week.
• By end of the week prices were assessed at the level of Rs.33/Kg, slightly reduced in this week.

Booking Scenario

INDIA& INTERNATIONAL

• Domestic prices of Acetic acid were assessed around Rs.33/Kg for Kandla and for Mumbai port of India.
• CIF India prices for Acetic Acid were assessed around USD 540-560/MT, with no change in price for  this week,
• Prices for Methanol on other side improved for this week. CFR India prices were assessed at the level of USD 208/MT, increased by USD 8/MT for this week.
• There has been significant rise in demand of Acetic Acid from the downstream industry which is VAM and PTA manufacturers. Rise in demand is primarily due to start up of new VAM units. Lotte BP Chemical plans to start trial operation at its new 200,000 tonne/year VAM plant in Ulsan in October 2020.
• Oil prices remained steady on Friday as reports of sluggish economic growth in China, the world's biggest crude importer and it has already raised concerns about fuel demand and countered optimism from the signing of the Sino-U.S. trade deal earlier in the week.
• In the fourth quarter of 2019, the world's second-largest economy grew by an expected 6 per cent from a year earlier, while the full-year expansion was 6.1 per cent, the slowest in 29 years, as per the government data.
• On other side India and the United States will discuss India’s energy security and the Asian country buying increased volumes of U.S. crude oil when U.S. President Donald Trump and Indian Prime Minister Narendra Modi meet later this year.
• India was until recently Iran’s second-largest oil customer after China, but the U.S. sanctions on Iranian oil exports made India stop purchases of oil from Iran as refiners did not want to risk secondary U.S. sanctions if they continue doing business with Tehran.
• On Thursday, closing crude values have increased. WTI on NYME closed at $58.52/bbl. Prices have increased by 0.71/bbl in compared to last closing prices. While Brent on Inter Continental Exchange is increased by 0.62/bbl in compare to last closing price and was assessed around $64.62/bbl.

PLANT NEWS

Acetic Acid unit undergo maintenance by Jiangsu Sopo Chemical

China based Acetic Acid unit is likely to undergo maintenance in the month of April. Unit is based at Zhejiang and Jiangsu province of China. The two units has the production capacity of 80,000 tonnes/year and 40,000 tonnes/year. Unit is likely to remain off-stream for around one month.

Acetic Acid unit undergo maintenance by Shanghai Wujing Chemical

China based Acetic Acid unit is likely to undergo maintenance in the month of April. Unit is based at Shanghai province of China. It has got two Acetic Acid manufacturing units. The two units has the production capacity of 450,000 tonnes/year and 250,000 tonnes/year. Unit is likely to remain off-stream for around one month.

1$: Rs. 71.08

Import Custom Ex. Rate USD/ INR: 71.65

Export Custom Ex. Rate USD/ INR: 69.95