Acetone Weekly Report 31 March 2017

Weekly Price Trend: 27-03-2017 to 31-03-2017

The above given graph focuses on the Acetone price trend. If we take a quick look at the above given weekly prices, it can be observed that this week prices of Acetone have remained firm. By the end of the week prices of Acetone were assessed at the level of Rs.64/kg for Kandla and 63/kg for Mumbai ports of India.

Booking Scenario

• These prices are inclusive of anti dumping duty.

INDIA& INTERNATIONAL    

• For the current week in domestic market acetone price have remained firm in compare to previous week and at the end of the week prices were assessed at the level of Rs 64/kg for Kandla and Rs 63/kg Mumbai ports.
• This week in international market, prices of Acetone have increased in compare to previous week.
• Chinese CEPSA chemical Shanghai to shut its Phenol/Acetone plant it is having production capacity of around 250000 mt/yr of Phenol and 150000 mt/yr of Acetone.
• As per report, Chinese February Acetone imports have increased two fold on year.
• Presently market is moving with soft velocity no major deals has been heard.
• With the increase in the feedstock and oil  prices Acetone prices also have increased.
• As per market report this week domestic Acetone market is moving with lacklustre velocity no major deals and discussion has been heard.
• This week with the little volatility prices have remained on the higher note with the expectation of extended supply cut. Brent and WTI crude both were assessed above $50 per barrel. Crude prices remain over 4 percent higher than they were on Tuesday. On Thursday prices have escalated as Kuwait gave its backing for an extension of OPEC production cuts in an attempt to reduce global oversupply.
• Market players have said that oil prices will higher as  OPEC and non-OPEC oil production giant Russia would agree to continue their production cut deal seeking to drive prices higher.
• There remains doubt that the output cuts will go deep enough for the world's bloated markets to tighten soon and significantly lift prices, especially as other producers that are not part of the agreement could step in to fill the supply gap. Moreover some players have said that there is a tremendous amount of stock in the markets and to expect a major increase in the price is not very realistic
• On Thursday, closing crude values have increased.WTI on NYME closed at $50.35/bbl, prices have increased by $0.84/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.54/bbl in compared to last trading and was assessed around $52.96/bbl.
• Feedstock benzene prices have increased this week.
• FOB Korea and CFR China prices of Benzene were evaluated at USD 805/mt and USD 810/mt respectively.

 $1 = Rs. 65.46
 Import Custom Ex. Rate USD/ INR: 66.20
 Export Custom Ex. Rate USD/ INR: 64.50