Acetic Acid Weekly Report 20 Oct 2018

Weekly Price Trend: 15-10-2018 to 19-10-2018

• The above given graph focuses on the Acetic Acid price trend from 15th Oct 2018 to 19th Oct 2018. If we take a quick look at the above given weekly prices, it can be observed that prices remained soft-to-stable for this week.
• With continuous variability in crude values prices and depreciating currency has affected domestic market significantly. In compare to last week there has been decline in domestic prices.
• By end of this week, prices were assessed at the level of Rs.57/Kg for Kandla and for Rs. 58/Kg for Mumbai port for bulk quantity.

Booking Scenario

INDIA& INTERNATIONAL

• Domestic prices of Acetic acid assessed around Rs.57/Kg for Kandla and Rs.58/Kg 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 710-730/MT increased by USD 20/MT 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.
• There has been significant decline in crude prices in last two weeks. Prices plunged by more than 11 % in last two weeks. Oil prices rose to nearly four-year highs at the start of October as there has been depletion in crude supply sue to US sanctions on Iran.
•  Rising U.S. crude stockpiles, forecasts for slower-than-expected demand growth and a sell-off in stock markets have weighed on crude futures.
• The supply of oil held in U.S. storage tanks has risen sharply over the last four weeks. U.S. crude stockpiles are up by 22.3 million barrels through last week. That's the biggest increase over that four-week period since 2015, when storage levels were rising toward all-time highs in a heavily oversupplied market.
• The market remains uncertain about the ability of producers such as Saudi Arabia and Russia to fill the gap left by the loss of roughly 1 million barrels a day of Iranian exports. Analysts say the market is deeply cynical that Riyadh would cut output and push oil prices higher to settle a political score.

1$ : Rs. 73.32
Import Custom Ex. Rate USD/ INR: 74.30
Export Custom Ex. Rate USD/ INR: 72.60