ACN Weekly Report 14 April 2018

Weekly Price Trend: 09-04-2018 to 13-04-2018

• The above given graph focuses on the ACN price trend from 9th April to 13th April 2018.
• Domestic prices witnessed a positive trend and prices increased by Rs.5/Kg for bulk quantity.
• Prices were assessed around Rs.133/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 1940-1960/MT.

INDIA& INTERNATIONAL

• Prices of ACN were assessed around Rs.133/Kg, increased by Rs.5/Kg for bulk quantity in span of one week. The weakened supply in international market has led to hike in domestic values.
• CFR India prices of Acrylonitrile were assessed in the range of USD 1940-1960/MT, reduced by USD 80/MT in compare to last week’s closing values.
• Feedstock Propylene market remained higher for this week. FOB Korea values were assessed around USD 1025/MT while CFR China values were assessed around USD 1060/MT while CFR SEA values assessed around USD 925/MT.
• Northeast Asia may see a reshuffle in the trade flow of acrylonitrile should China go ahead with slapping an additional tariff on ACN imports from the US. The brewing US-China trade war has drawn muted reaction from Northeast Asia.
• "If tariff passes, then [US producers] such as Ineos currently selling to Chinese ABS producers will probably shift to South Korea or Taiwan instead. South Korean and Taiwanese ACN producers will move their cargoes to China accordingly, with a logistical markup," a trader said this week.
• Oil prices have escalated through the week but on Thursday prices have remained mixed.
• On Thursday, closing crude values have mixed. WTI on NYME closed at $67.07/bbl; prices have increased by $0.25/bbl in compared to last closing prices. While Brent on Inter Continental Exchange decreased by $0.40/bbl in compared to last trading and was assessed around $72.02/bbl.
• Oil markets remained tense on Thursday on concerns over a military escalation in Syria, although prices were some way off Wednesday's late-2014 highs as bulging U.S. supplies weighed. A trade dispute between the United States and China also kept markets on edge.
• Crude oil prices settled at three-year highs amid ongoing expectations that geopolitical tensions in the Middle East could add a possible ‘fear premium’ to oil, while continued OPEC cuts supported sentiment.
• If the U.S. does indeed launch missiles at Syria, this would heighten risk and likely at once push crude oil higher and depress equities further.

$1 = Rs. 65.20
Import Custom Ex. Rate USD/ INR: 65.90
Export Custom Ex. Rate USD/ INR: 64.20