ACN Weekly Report 15 Sep 2018

Weekly Price Trend: 10 -09-2018 to 14-09-2018

• The above given graph focuses on the ACN price trend from 10th Sept to 14th Sept 2018.
• Domestic prices remained volatile for this week. Prices were assessed around Rs.175/Kg for bulk quantity by end of the week for Kandla port. There has been vulnerability in domestic prices for ACN.

Booking Scenario

The above chart shows the international prices of ACN. CFR India prices of ACN were assessed in the range of USD 2255-2275/MT.

INDIA& INTERNATIONAL

• Prices of ACN were assessed around Rs.175/kg, remained volatile for this week. Prices increased by Rs.1/Kg for this week.
• CFR India prices of Acrylonitrile were assessed in the range of USD 2255-2275/MT, remained unchanged for this week. Propylene market remained firm for this week. FOB Korea values were assessed around USD 1105/MT, increased by USD 25/MT for this week. CFR China prices witnessed a rise of USD 10/MT and were assessed around USD 1145/MT.
• Higher cost for ACN in Asian countries has put an additional pressure on the Acrylic fibre industry in Asian market. The China based AF industries have now curtailed their production as they can’t afford the higher cost of ACN. Many plants has also shut down their production rate in Asian countries.
• China based many AF units will shut down their production rate. China based Jilin Jimeng will shut down its unit with capacity of 1,60,000 tonnes/year for 25 days in the month of October.
• Oil prices crossed the levels of USD80 by mid of the week, later it fell by more than 2% on Thursday. This hike was the highest in last four months. The international Energy Agency has already warned that the oil market is tightening at the moment and world oil demand would soon reach 100 million barrels per day (bpd) in the next three months, global economic risks were mounting.
• U.S. companies in China are being hurt by tariffs in the growing trade war between Washington and Beijing, according to a survey, prompting U.S. business lobbies to urge President Donald Trump's administration to reconsider its approach.
• The White House has invited Chinese officials to restart trade talks just as it prepares to escalate a trade war with China with tariffs on $200 billion worth of Chinese goods.
• The other major factor is the loss of Iranian oil to the market as refiners are cutting or halting purchase ahead of U.S. sanctions in November is also raising concerns about supply.
• All these factor has put an rigorous pressure on petrochemical industry and has led to hike in the prices of crucial petrochemical products.

$1 = Rs. 71.84
Import Custom Ex. Rate USD/ INR: 72.55
Export Custom Ex. Rate USD/ INR: 70.85