ACN Weekly Report 23 Sep 2017

Weekly Price Trend: 18-09-2017 to 22-09-2017

• The above given graph focuses on the ACN price trend from18th September to 22nd September 2017. In compare to last week’s closing values there has been significant hike in domestic prices.
• Domestic prices were assessed at the level of Rs.129/Kg, with an hike of Rs. 14/Kg in compare to last week’s closing values.

Total import at Kandla port in the month of August 2017

The above chart depicts the import of ACN at Kandla port of India in the month of August 2017.

Booking Scenario

The above chart shows the international prices of ACN. CFR India prices of ACN were assessed in the range of USD 1440-1460/MT.
INDIA& INTERNATIONAL

• Domestic prices of ACN increased heavily due to limited supply of chemical in the international market. 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 1720-1740/MT, increased by USD 30/MTS in compare to last week’s closing values.
• There has been significant rise in Asian contract price for ACN in Asian markets. The hike has been in particular due to gain in the values of upstream Propylene prices in Asian market. CFR South East Asia prices were assessed around USD 1680/MT, gain of USD 40/MT. CFR Far East Asia prices were assessed around USD 1635/MT and increase of USD 40/MT in a week.
• This hike has been particularly due to adverse effect of hurricane Harvey. One of the major plant of ACN i.e. Ineos continue its force majeure in Texas.
• According to trader the Asian countries are really facing extreme tight supply of ACN. In China many domestic units of ACN has been shut down due to environmental issues and environment protection act. Hike in values will continue to dominate for at least few more weeks.
• Many of the China based units like Sinopec Qilu having capacity of 80,000 mt/year and Jilin having the capacity of no1 unit 1,106,000 mt/year were shut down in mid of this year. Restart of these units continues to remain uncertain.
• On other side feedstock propylene prices were assessed around USD 1005/mt CFR China levels, a steep hike of week on week rise of USD 60/mt. FOB Korea values for Propylene were assessed around USD 945/MT, hike of USD 50/MT in one week. CFR SEA prices were assessed around USD 875/MT, steep hike of USD 90/MT.
• This week oil prices followed mixed trend. Oil prices were steady on Thursday ahead of a meeting of oil producers that could extend production limits aimed at clearing a glut that has depressed the market for more than three years. As per report, Ministers from the OPEC, Russia and other producers meet in Vienna on Friday and are due to consider extending output cuts that began in January.
• On Thursday, closing crude values have mixed.WTI on NYME closed at $50.55/bbl, prices have decreased by $0.14/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.14/bbl in compared to last trading and was assessed around $56.43/bbl. Presently many analysts anticipate that OPEC to extend the deal, possibly to the end of next year.
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$1 = Rs. 64.79
Import Custom Ex. Rate USD/ INR: 65.40
Export Custom Ex. Rate USD/ INR: 63.70