ACN Weekly Report 29 Sep 2018

Weekly Price Trend: 24-09-2018 to 28-09-2018

• The above given graph focuses on the ACN price trend from 24th Sept to 28th Sept 2018.
• Domestic prices remained weak for this week. There has slight weakening in domestic values. Although prices has reduced in compare to last week’s closing values. Prices were assessed around Rs.168/Kg for bulk quantity by end of the week for Kandla port.

Booking Scenario

The above chart shows the international prices of ACN. CFR India prices of ACN were assessed in the range of USD 2220-2240/MT.

INDIA& INTERNATIONAL

• Prices of ACN were assessed around Rs.168/kg, reduced by Rs.5/Kg for this week.
• CFR India prices of Acrylonitrile were assessed in the range of USD 2220-2240/MT, reduced by USD 20/MTS for this week.  CFR Far East Asia prices were assessed in the range of 2215-2235/MTS.
• Propylene market remained firm for this week. FOB Korea values were assessed around USD 1135/MT, reduced by USD 10/MT for this week.
• Prices in China remained firm on back of tight supply and plant turnarounds. Moreover many restocking of material has also pulled up the prices significantly.
• Trading activities will become dull due to lack of participation of Chinese traders. The trading activity will gain only after second week of October.
• Continuous surge in crude prices has heated the global oil market. Crude prices are likely to cross the mark of USD 100 in next few weeks.
• According to Petrochemical giant Total, the supply disruptions and the delay time associated with OPEC’s ability to increase production could pull up the price to $100 per barrel. This in turn will hamper the economy and the oil industry.
• Disruptions in supply coming from Iran, Venezuela, and Libya give strong support to oil prices and they may head into triple-digit territory. On the other hand, although OPEC has assured to boost production, but output hasn’t increased so much. Saudi Arabia has capacity of 11 million bpd, but boosting production from current levels would need time, because they have to mobilize rigs.
• US Sanctions will surely trigger a dramatic shortfall in global supply. And the sanctions are widely expected to have an immediate impact on Iran's oil exports, although estimates of exactly how much of the country's oil could disappear from November 4 vary widely.
• Some energy market analysts expect around 500,000 barrels per day (bpd) to disappear once U.S. sanctions against Iran come into force, while others have warned as much as 2 million bpd could come offline over the coming months.

PLANT NEWS

Shanghai SECCO shuts its ACN plant
Shanghai SECCO Petrochemical has shut down its ACN unit for maintenance turnaround.
The unit is based at Shanghai in China and will remain of-steam for 4-5 weeks.
Unit has the production capacity of 1, 30,000 tonnes/year.

ACN plant to be shut down Fushun Petrochemical
Fushun Petrochemical is planning to shut down its ACN unit for maintenance turnaround. The unit is likely to remain off-stream for more than three weeks.
Unit is based at Liaoning province of China and has the production capacity of 92,000 tonnes/year.

$1 = Rs. 72.48
Import Custom Ex. Rate USD/ INR: 73.65
Export Custom Ex. Rate USD/ INR: 71.95