Acetic Acid Weekly Report 4 Jan 2019

Weekly Price Trend: 31-12-2018 to 04-01-2019

• The above given graph focuses on the Acetic Acid price trend from 31^stDec 2018 to 4^th Jan 2019. If we take a quick look at the above given weekly prices, it can be observed that prices remained stable for this week.
• With continuous fluctuation in crude values prices there has been considerable decline in domestic values.
• By end of this week, prices were assessed at the level of Rs.39/Kg for Kandla and for Mumbai port for bulk quantity. 

Booking Scenario

INDIA& INTERNATIONAL 

• Domestic prices of Acetic acid assessed around Rs.39/Kg for Kandla and for Mumbai port of India. There has no change in domestic values in compare to last week’s closing values.
• CIF India prices for Acetic Acid were assessed around USD 550-570/MT with no change in compare to last week’s closing values.
• Impact of decline in the Methanol values has significantly affected the Acetic Acid prices in international market. Methanol values have improved by USD 2 and were assessed at the level of USD 234/MTS for this week.
• Acetic Acid prices in spot market of China remained weak and continued to slowdown due to relatively weak demand and stable supply. Earlier most of the Acetic Acid units were operated at high rates leading to high inventory levels. Experts believe that production is likely to increase in near future. With respect to demand, the downstream products are also facing weak demand and are waiting for upcoming Lunar holidays. Vinyl acetate monomer (VAM) sector, demand also remained soft as Sichuan Vinylon’s two plants with a combined 500,000 tonne/year capacity will shut for four to six weeks from end-December, while most other VAM plants in China were running at low rates. Showdown in values for Acetic Acid is also due to decline in the Methanol values in China and Asia market.
• There has been significant lowering in crude prices in last few weeks. With end of week last week Brent and WTI witnessed hike in its values on back of improvement in US and CHINA trade talks.
• Oil prices increased by more than 1 percent on Monday with an optimistic view of discussion between USD and Chinese delegations. This could lead to supply cuts by major producers to support the market.
• Brent crude futures were at $57.75 per barrel at 0404 GMT, up 69 cents, or 1.2 percent, from their last close.
• U.S. West Texas Intermediate (WTI) crude oil futures were at $48.67 per barrel, up 71 cents, or 1.5 percent.  

PLANT NEWS

Acetic Acid unit shut down by YARACO for maintenance

• Yangzte River Acetyl Corp (YARACO) has shut down its Acetic Acid unit for maintenance turnaround. The unit was shut down last week as per annual maintenance schedule and will remain off-stream for around 4-5 weeks. The unit is likely to resume its production in the first week of February 2019.
• Unit is based at Chongqing province of China and has the production capacity of 4,20,000 tonnes/year. 

1$: Rs. 69.87

Import Custom Ex. Rate USD/ INR: 71.25

Export Custom Ex. Rate USD/ INR: 69.55