Acetic Acid Weekly Report 7 June 2019

Weekly Price Trend: 03-06-2019 to 07-06-2019

• The above given graph focuses on the Acetic Acid price trend from 3^rd June to 7^th June 2019. If we take a quick look at the above given weekly prices, it can be observed that prices remained weak with decline in values.
• Prices remained soft-to-stable throughout this week. By end of this week, prices were assessed at the level of Rs.29.5/Kg for Kandla and for Mumbai port for bulk quantity. Prices have reduced by Rs.1/Kg for bulk quantity in compare to last week’s closing values.

Booking Scenario

INDIA& INTERNATIONAL 

• Domestic prices of Acetic acid were assessed around Rs.29.5/Kg for Kandla and for Mumbai port of India. There has been decline in domestic values on back of weak demand and slow requirement.
• CIF India prices for Acetic Acid were assessed around USD 310-330 reduced by USD 30/MT in compare to last week’s closing values.
• Prices for Methanol have remained stable for this week. But since last six months there has been slowdown in international prices for Methanol. It has been floating below USD 300 mark and has not seen any major hike in last two months.
• Crude prices has seen significant rise in prices in this week, a rise highest in last five months. This rise has been well supported by a report that Washington could postpone trade tariffs on Mexico and signs OPEC and other producers may extend crude supply cuts.
• On Wednesday, Brent and WTI sank to their lowest levels since mid-January at $59.45 and $50.60 respectively, after US crude production hit a new record-high and stockpiles climbed to their highest since July 2017. But on Thursday oil prices followed US stocks higher after reports confirmed that the United States is considering a delay in the tariffs on Mexico as talks continue.
• Prices had been supported by supply curbs by the Organization of the Petroleum Exporting Countries (OPEC) and some allies including Russia. Supply has also been limited by US sanctions on oil exports from Iran and Venezuela.
• On Thursday day, closing crude values have increased. WTI on NYME closed at $52.69/bbl. Prices have increased by 0.91/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $1.04/bbl in compare to last closing price and was assessed around $61.67/bbl. 

1$: Rs. 69.47

Import Custom Ex. Rate USD/ INR: 70.30

Export Custom Ex. Rate USD/ INR: 68.60