Acetic Acid Weekly Report 24 March 2018

Weekly Price Trend: 19-03-2018 to 23-03-2018

• The above given graph focuses on the Acetic Acid price trend from 19th March 2018 to 23rd March 2018. If we take a quick look at the above given weekly prices, it can be observed that prices remained vulnerable throughout this week.
• By end of this week, prices were assessed at the level of Rs.53/Kg for Kandla and Rs.53.5/Kg for Mumbai port for bulk quantity.

Total import at various ports in the month of February 2018

The above table depicts the various imports of Acetic Acid in the month of February 2018.

Booking Scenario

INDIA& INTERNATIONAL

• Domestic prices of Acetic acid assessed around Rs.52.5/Kg for Kandla and Rs.53.5/Kg for Mumbai port of India.
• CFR India values remained unchanged for this week. Prices were assessed in the range of USD 735-755/MT. Imports has been stable in the month of February.
• An important decision has been taken by the Reserve Bank of India (RBI) to ban the lending credit will have an adverse impact on chemical importers in the country. The recent scam in PNB and many other defaulters has hit hard to the Indian banking system. The central banking authority has now decided to put a weight on LC and LOU. The implementation of this law will come in April month. This will in turn affect the GDP growth of the country. An LOU is generally used to fund imports and to avail short-term credit. It is also an undertaking by the issuing bank to pay in case of default by the one on whose behalf it was issued. The Indian importers believe that this ban will have an adverse impact on traders as import cost will shoot up. The most prominent chemicals are Phenol and acetone and other solvents are likely to witness a severe hike in values.
• This week crude oil prices have followed little volatility while increased through the week. On Thursday oil prices fell as investors booked profits after this week's rally, but losses were limited by the continuing efforts of OPEC and its allies to curb supplies.
• On Thursday, closing crude values have decreased. WTI on NYME closed at $64.30/bbl; prices have decreased by $0.87/bbl in compared to last closing prices. While Brent on Inter Continental Exchange decreased by $0.56/bbl in compared to last trading and was assessed around $68.91/bbl. Recently,  market players continue to see fragility in the oil market.
• Profit-taking risks still appear large, strong output growth challenges the market-tightening narrative and the supply deals overdue transitioning remains blanketed in uncertainty.

1$ : Rs. 65.00
Import Custom Ex. Rate USD/ INR: 65.80
Export Custom Ex. Rate USD/ INR: 64.15