Acetic Acid Weekly Report 23 June 2018

Weekly Price Trend: 18-06-2018 to 22-06-2018

• The above given graph focuses on the Acetic Acid price trend from 18th June 2018 to 22nd June 2018. If we take a quick look at the above given weekly prices, it can be observed that prices remained weak for this week.
• Domestic prices have increased to high level due to acute supply in the local market.
• By end of this week, prices were assessed at the level of Rs.5/Kg for Kandla and for Mumbai port for bulk quantity.

Total import at various ports in the month of May 2018

The above table depicts the various imports of Acetic Acid in the month of May 2018.
Booking Scenario

INDIA& INTERNATIONAL

• Domestic prices of Acetic acid assessed around Rs.56/Kg for Kandla and Mumbai port of India. Prices reduced in compare to last week’s closing values.
• CFR India price were assessed around USD 750-770/MT, reduced by USD 20/MTS in compare to last week’s closing values.
• With restart of many Methanol units in China and Acetic Acid units, prices are now on settling mode.
• On contrary prices have been increasing in European market. Leading petrochemical manufacturer BP has increased its contract prices of Acetic Acid for the US and Canada region in July. Earlier the BP announced force majeure at its Texas plant. Following the BP declaration, DOW also force majeure at its VAM plant as it gets feedstock from BP. All these declarations led to tight supply of the chemical followed by significant hike in Acetic Acid values in international market.
• There has been chaos in international prices as Indian custom exchange rate has also increased to significant level. Crisis in international market due to imposition of trade tariffs on China by US and even India has also imposed tariffs on imports of goods from US.
• This week crude oil prices have followed volatile trend. on Thursday Global benchmark Brent crude extended losses ahead of Friday's meeting of the OPEC, where producers are expected to boost output.
• On Thursday, closing crude values have plunged. WTI on NYME closed at $65.54/bbl; prices have decreased by $0.17/bbl in compared to last closing prices. While Brent on Inter Continental Exchange decreased by $1.69/bbl in compare to last closing price and was assessed around $73.05/bbl.
• Today oil prices rose by more than 1 percent in early Asian trading, pushed up by uncertainty over whether OPEC would manage to agree a production increase at a meeting in Vienna later in the day.
• Iran had been expected to oppose any rise in crude output, but it has now signalled it may support a small increase. As per report, presently oil market had now rebalanced and its aim was to prevent a shortage of crude in future that could squeeze the market.

1$ : Rs. 67.84
Import Custom Ex. Rate USD/ INR: 69.10
Export Custom Ex. Rate USD/ INR: 67.40