ACN Weekly Report 13 Oct 2018

Weekly Price Trend: 08-10-2018 to 12-10-2018

• The above given graph focuses on the ACN price trend from 8th Oct to 12th Oct 2018.
• Domestic prices remained volatile for this week. There has slight weakening of domestic values. Although prices remained stable in compare to last week’s closing values. Prices were assessed around Rs.165/Kg for bulk quantity by end of the week for Kandla port.

Booking Scenario

The above chart shows the international prices of ACN. CFR India prices of ACN were assessed in the range of USD 2150-2170/MT.

INDIA& INTERNATIONAL

• Prices of ACN were assessed around Rs.165/kg, reduced by Rs.3/Kg in compare to last week’s closing values.
• CFR India prices of Acrylonitrile were assessed in the range of USD 2150-2170/MT, with no change in compare to last week’s closing values.
• Propylene market remained firm for this week. FOB Korea values were assessed around USD 1135/MT, remained unchanged for this week. CFR China prices were assessed at the level of USD 1195/MT.
• Last week there was strong rally for crude prices and was expected to cross the mark of USD 100/bbl very soon. But this week scenario was totally different. Brent crossed the mark of $86/bbl on Tuesday , lowered in last two days on back of investors sell off in the trading.
• The main story driving the oil market remains the loss of Iranian crude exports ahead of the full renewal of U.S. sanctions on Nov. 4. That deadline is still frightening large over the market and could help push oil prices back up.
• All the major nations unanimously agree that with Iran sanctions, a large chunk of oil will be removed from the market. How strong its impact is beyond everybody’s imaginations.
• Emerging markets like India are really struggling with higher oil prices coupled with continuous currency depreciation.
• Indian Rupee has depreciated more than by 15% year-to-date. Higher crude oil prices, demand from defense and oil marketing firms have contributed to the latest bout of weakness. Rupee was overvalued on trade weighted real effective exchange rate.
• China market is also facing the heat of rise in crude prices and deprecation of its own currency. Further the trade tariffs with US will affect the Chinese economy in long run. To check its impact China’s Central Bank has cut down the reserve requirement ratios (RRRs) by one per cent from October 15 which will inject a net USD 109.2 billion in cash into the banking system.
• The cracker has been restarted by JXTG Nippon Oil & Energy in the last week of September 2018. Earlier the unit was shut down in the second week of August for annual maintenance. The cracker is based at Kawasaki in Japan and has the production capacity of Ethylene around 4,48,000 mt/year and Propylene around 2,73,000 mt/year.

PLANT NEWS
Shanghai SECCO shuts its ACN plant
Shanghai SECCO Petrochemical has shut down its ACN unit for maintenance turnaround. The unit is based at Shanghai in China and will remain of-steam for 4-5 weeks.
Unit has the production capacity of 1, 30,000 tonnes/year.
ACN plant to be shut down Fushun Petrochemical
Fushun Petrochemical is planning to shut down its ACN unit for maintenance turnaround. The unit is likely to remain off-stream for more than three weeks.
Unit is based at Liaoning province of China and has the production capacity of 92,000 tonnes/year.

$1 = Rs. 73.54
Import Custom Ex. Rate USD/ INR: 74.60
Export Custom Ex. Rate USD/ INR: 72.90