Acetic Acid Weekly Report 29 Sep 2018

Weekly Price Trend: 24-09-2018 to 28-09-2018

• The above given graph focuses on the Acetic Acid price trend from 24th Sept 2018 to 28th Sept 2018. If we take a quick look at the above given weekly prices, it can be observed that prices remained volatile for this week.
• Prices for Acetic Acid remained soft for 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.55/Kg for Kandla and for Mumbai port for bulk quantity.

Booking Scenario

INDIA& INTERNATIONAL

• Domestic prices of Acetic acid assessed around Rs.57/Kg for Kandla and for Mumbai port of India. Prices have remained vulnerable throughout this week.
• This week initially prices remained 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.
• Significant rise was seen in the international prices for Acetic acid as well. This improvement is unlikely sustain in next week as China market will remain close for next week.
• The soaring prices of Methanol in international market may affect 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.
• China market will remain closed for next week as the nation will be celebrating Golden week festival.
• Continuous surge in crude prices has heated the global oil market. Crude prices are likely to cross the mark of USD 100 in next few weeks.
• According to Petrochemical giant Total, the supply disruptions and the delay time associated with OPEC’s ability to increase production could pull up the price to $100 per barrel. This in turn will hamper the economy and the oil industry.
• Disruptions in supply coming from Iran, Venezuela, and Libya give strong support to oil prices and they may head into triple-digit territory. On the other hand, although OPEC has assured to boost production, but output hasn’t increased so much. Saudi Arabia has capacity of 11 million bpd, but boosting production from current levels would need time, because they have to mobilize rigs.
• US Sanctions will surely trigger a dramatic shortfall in global supply. And the sanctions are widely expected to have an immediate impact on Iran's oil exports, although estimates of exactly how much of the country's oil could disappear from November 4 vary widely.
• Some energy market analysts expect around 500,000 barrels per day (bpd) to disappear once U.S. sanctions against Iran come into force, while others have warned as much as 2 million bpd could come offline over the coming months.

PLANT NEWS

Henan LongYu Coal-Chemical to restart Acetic Acid unit
China based Henan LongYu Coal-Chemical will soon restart its Acetic Acid unit. Earlier the unit was shut down for annual maintenance.
Unit is based at Yongcheng in Henan province of China and has the production capacity of 4,00,000 tonnes/year.

Henan LongYu Coal-Chemical to restart Acetic Acid unit
China based Henan LongYu Coal-Chemical will soon restart its Acetic Acid unit. Earlier the unit was shut down for annual maintenance.
Unit is based at Yongcheng in Henan province of China and has the production capacity of 4,00,000 tonnes/year.

1$ : Rs. 72.48
Import Custom Ex. Rate USD/ INR: 73.65
Export Custom Ex. Rate USD/ INR: 71.95