ACN Weekly Report 14 Oct 2017

Weekly Price Trend: 09-10-2017 to 13-10-2017

• The above given graph focuses on the ACN price trend from 9th Oct to 13th Oct 2017. In compare to last week’s closing values there has been decline in values for this week.
• Domestic prices were assessed at the level of Rs.125/Kg, with no change in compare to last week’s closing values.

Booking Scenario

The above chart shows the international prices of ACN. CFR India prices of ACN were assessed in the range of USD 1715-1735/MT.

INDIA& INTERNATIONAL

• Domestic prices of ACN reduced significantly for this week. Prices were assessed at the level of Rs.125/Kg for bulk quantity.
• CFR India prices of Acrylonitrile were assessed in the range of USD 1745-1765/MT, with an hike of USD 30/MTS in compare to last week’s closing values.
• The market is likely to remain slow due to festive across the nation. Moreover most of the markets will remain closed next week due to Diwali festival and will open only after next week.
• ACN unit based at Texas of Ineos is operated at half of its capacity. The two reactors of the unit are operating half of its capacity in current situation. The unit has the production capacity of 5,45,000 mt/year. "We are currently operating 50% and we are currently operating two reactors," according to company sources. They declined to give further details or confirm any future plans.
• Earlier force majeure was declared by Ineos at its Green Lake plant due to destruction by hurricane Harvey.
• Tightening of pollution norms in China has been curtailing the production of the county to greater extent. Manufacturers are bound to produce the chemical in certain limit otherwise will face strict penalties by the government. Implementation of new environmental laws in China has already caused a decline in its chemicals exports and the trend is likely to accentuate in next few years. This has led to limited supply of the chemical within country and fall in exports. This upsurge has led to surging of cost of material and rise in manufacturing cost.
• There has been continuous oscillation in crude values for this week. On Thursday oil prices rebounded from earlier losses, but ended lower on the day, after the Energy Department reported a larger-than-expected decline in U.S. inventories and a falloff in weekly production.
• On Thursday, crude values closed on lower note. WTI on NYME closed at $50.60/bbl, prices have decreased by $0.70/bbl in compared to last closing prices. While Brent on Inter Continental Exchange decreased by $0.69/bbl in compared to last trading and was assessed around $56.25/bbl.
• According to reports, the global outlook for oil markets in 2018 could put a dampener on hopes for higher prices. Market players said that supply growth in the final three months of the year would be supportive for oil prices in the fourth quarter. Oil prices could climb close to $60 a barrel in the "very short run."

$1 = Rs. 64.93
Import Custom Ex. Rate USD/ INR: 65.95
Export Custom Ex. Rate USD/ INR: 64.30