BAM Weekly Report 13 Oct 2018

Weekly Price Trend: 08-10-2018 to 12-10-2018

• The above given graph focuses on the Butyl Acrylate Monomer price trend for current week.
• If we take a quick look at the above given weekly prices, it can be observed that prices remained firm for this week.
• Prices of BAM were assessed at the level of Rs.125/Kg for ex Kandla for bulk quantity increased by Rs.1/Kg in compare to last week’s closing values.

Booking Scenario

The above chart shows the international prices of BAM and its comparison from the previous prices.

INDIA & INTERNATIONAL

• Domestic values for BAM remained firm for this week. Prices were assessed at the level of Rs.125/Kg for bulk quantity.
• CIF India prices of BAM were assessed at the level of USD 1500-1520/MT (Full Duty), increased by USD 20/MTS for this week.
• The rise in the domestic prices has been due to increase in its demand in paints, sealants and coating industries. With approaching festive across the country demand for paints has increased incredible.
• Last week there was strong rally for crude prices and was expected to cross the mark of USD 100/bbl very soon. But this week scenario was totally different. Brent crossed the mark of $86/bbl on Tuesday , lowered in last two days on back of investors sell off in the trading.
• The main story driving the oil market remains the loss of Iranian crude exports ahead of the full renewal of U.S. sanctions on Nov. 4. That deadline is still frightening large over the market and could help push oil prices back up.
• All the major nations unanimously agree that with Iran sanctions, a large chunk of oil will be removed from the market. How strong its impact is beyond everybody’s imaginations.
• Emerging markets like India are really struggling with higher oil prices coupled with continuous currency depreciation.
• Indian Rupee has depreciated more than by 15% year-to-date. Higher crude oil prices, demand from defense and oil marketing firms have contributed to the latest bout of weakness. Rupee was overvalued on trade weighted real effective exchange rate.
• China market is also facing the heat of rise in crude prices and deprecation of its own currency. Further the trade tariffs with US will affect the Chinese economy in long run. To check its impact China’s Central Bank has cut down the reserve requirement ratios (RRRs) by one per cent from October 15 which will inject a net USD 109.2 billion in cash into the banking system.

$1 = Rs. 73.54
Import Custom Ex. Rate USD/ INR:  74.60
Export Custom Ex. Rate USD/ INR:  72.90