ACN Weekly Report 18 Nov 2017

Weekly Price Trend: 13-11-2017 to 17-11-2017

• The above given graph focuses on the ACN price trend from 13th Nov to 17th Nov 2017. In compare to last week’s closing values there has no change in values for this week.
• Domestic prices were assessed at the level of Rs.129/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 1900-1920/MT.
INDIA& INTERNATIONAL

• Domestic prices of ACN remained stable-to-firm for this week. Prices were assessed at the level of Rs.129/Kg for bulk quantity.
• CFR India prices of Acrylonitrile were assessed in the range of USD 1900-1920/MT, with decline of USD 70/MTS in compare to last week’s closing values.
• This has been one of the major crack down in values since July. CAN has been witnessing hike in prices due limited supply across the world.
• Experts believe this softening of values is likely to last for few more weeks as there has been significant improvement in the supply of the chemical.
• One of the major importer of ACN is China is witnessing heavy supply of CAN in turn leading to slowdown in values. One of the major concern for China is domestic supply is still weak as major plants are either shut down for maintenance or has been closed down by government due to environmental concerns. Many units are unable to resume their production line.
• Qilu Petrochemicals shut down its ACN unit in the second week of July. The unit continues to remain off-stream and is uncertain about its restart date. Earlier the unit was shut down for maintenance but could not resume its production as strict environmental inspections have been major concern. The Chinese government has become very conscious and strict with its environmental laws. All these issues has in turn plunged the ACN  prices to very high level in China.
• The unit is based at Zibo in Shandong province of China and has the production capacity of 80,000 tonnes per year.
• Other unit like China Petrochemical Development Corp (CPDC) has shut down its ACN unit for maintenance turnaround. The unit is based at Kaohsiung in Taiwan and has the manufacturing capacity of 2,40,000 mt/year. Taiwan based unit is likely to remain of-stream for around two weeks.
• This in turn has raised the concern for the manufacturers of ACN in China.
• Moreover there has been continuous hike in exchange rates for India as well. This in turn tightens the market conditions for importers.
• There has been a constant worry from China market as government over there has become really strict with petrochemical industry regarding pollution and environmental issues. Many units under shut down are unable to go on-stream due to denial from government authorities.

$1 = Rs. 67.63
Import Custom Ex. Rate USD/ INR: 66.20
Export Custom Ex. Rate USD/ INR: 64.50