Acetic Acid Weekly Report 30 June 2018

Weekly Price Trend: 25-06-2018 to 29-06-2018

• The above given graph focuses on the Acetic Acid price trend from 25th June 2018 to 29th 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 remained soft-to-stable in the local market.
• 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.55/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, with no change 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.
• The melt down of Indian currency to its lowest level in this week will put oil prices under great pressure for India. Moreover under pressure of US, Indian government has issued to its oil companies to not to make any oil purchase from Iran will further increase the fuel prices in the country. The next week is likely to witness significant bump in fuel prices as well as petchem prices.
• This week crude oil prices have increased heavily. On Thursday oil prices climbed, with U.S. crude hitting a three-and-a-half year high, bolstered by supply concerns due to U.S. sanctions that could cause a large drop in crude exports from Iran.
• On Thursday, closing crude values have increased. WTI on NYME closed at $73.45/bbl; prices have increased by $0.69/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.23/bbl in compare to last closing price and was assessed around $77.85/bbl.
• On Friday, oil prices dipped amid escalating trade friction between the United States and other major economies, although crude markets remain tight due to supply disruptions and generally high demand.
• As per market report, oil prices have rallied for much of 2018 on tightening market conditions due to record demand and voluntary supply cuts led by OPEC and other producers including Russia. Unplanned supply disruptions from Canada to Libya and Venezuela also have supported prices.
• OPEC plus meetings was that those countries with spare capacity would increase production to keep the market well-supplied."an incremental 1 million bpd from this group is feasible in July" and that this would offset the expected drop in Iranian exports and other declines elsewhere during the second-half of the year.

1$ : Rs. 68.47
Import Custom Ex. Rate USD/ INR: 69.10
Export Custom Ex. Rate USD/ INR: 67.40