ACN Weekly Report 15 April 2017

Weekly Price Trend: 10-04-2017 to 14-04-2017

• The above given graph focuses on the ACN price trend from 10th April to 14th April 2017.  In compare to last week’s closing values there has been no change in the domestic prices.
• Domestic prices were assessed at the level of Rs.114/Kg for bulk quantity.

Booking Scenario

The above chart shows the international prices of ACN. CFR India prices of ACN were assessed in the range of USD 1340-1360/MT.
INDIA& INTERNATIONAL

• Domestic prices of ACN remained unchanged for this week. Prices were assessed at the level of Rs 114/Kg for bulk quantity.
• CFR India prices of Acrylonitrile were assessed in the range of USD 1340-1360/MT, with an massive decrease of USD 220/MT in compare to last week’s closing values.
• Ineos Nitriles has lifted its ban on supply of ACN to European nations. The ban was lifted after restarting of production from its Seal Sands, UK and Cologne, Germany plants in March end. Earlier the unit was shut down abruptly in March on back of technical issues.  
• This shutdown at Seal Sands lasted three weeks and affected the entire 280,000 mt/year plant while the maintenance at Cologne was planned to last for 10-12 days on the smaller of the plant's two lines, accounting for 100,000 mt/year of total ACN production capacity of 340,000 mt/year.
• Severe volatility was observed in the crude prices for this week. Still the market sentiments by end of the week remained strong with prompting crude prices to close on higher note. Yesterday some stability was seen global oil market as demand and supply was on matching hand due to fall in the stockpiles in developed nations in the month of March.
• According to recent reports, the market has been oversupplied since last three years, prompting members of the OPEC and some non-OPEC producers to agree to cut output in the first six months of 2017 to rein in the glut. OPEC meets on May 25 to consider extending the cuts beyond June.
• On other side there has been continuous rise in oil production in U.S., both onshore and offshore, which will act as a headwind for the market.
• As per market analyst, refinery runs are picking up, and driving season is around the corner, so inventories will start going down soon. Amid so much uncertainty, the only thing that is certain is that crude oil production is growing, and there are no signs that this will change while the going is good and prices stay above $50 a barrel.
• On Thursday, closing crude values have increased.WTI on NYME closed at $53.18/bbl, prices have increased by $0.07/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.03/bbl in compared to last trading and was assessed around $55.89/bbl.

$1 = Rs. 64.41
Import Custom Ex. Rate USD/ INR: 65.90
Export Custom Ex. Rate USD/ INR: 64.20