BAM Weekly Report 14 Oct 2017

Weekly Price Trend: 09-10-2017 to 13-10-2017

• 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 there has been slowdown in values by end of this week.
• Prices of BAM were assessed at the level of Rs.88/Kg for ex Kandla for bulk quantity.

Booking Scenario

The above chart shows the international prices of BAM and its comparison from the previous prices. On Friday CFR India prices of BAM prices increased for this week.

INDIA & INTERNATIONAL

• BAM prices remained soft for this week. This has been particularly due to festive season across the country and weakened supply of the chemical. With long weekend ahead, the supply has really declined and demand has also slow down. This upcoming festive season will continue to weaken the demand of the chemical.
• By end of the week prices were assessed at the level of Rs.88/Kg for bulk quantity for Kandla and Mumbai port of India.
• CIF India prices of BAM were assessed at the level of USD 1320-1340/MT (Full Duty), an increase of USD 20/MTS in compare to last week’s closing values.
• The market is likely to remain slow due to festive across the nation. Moreover most of the markets will remain closed next week due to Diwali festival and will open only after next week.
• Tightening of pollution norms in China has been curtailing the production of the county to greater extent. Manufacturers are bound to produce the chemical in certain limit otherwise will face strict penalties by the government. Implementation of new environmental laws in China has already caused a decline in its chemicals exports and the trend is likely to accentuate in next few years. This has led to limited supply of the chemical within country and fall in exports. This upsurge has led to surging of cost of material and rise in manufacturing cost.
• There has been continuous oscillation in crude values for this week. On Thursday oil prices rebounded from earlier losses, but ended lower on the day, after the Energy Department reported a larger-than-expected decline in U.S. inventories and a falloff in weekly production.
• On Thursday, crude values closed on lower note. WTI on NYME closed at $50.60/bbl, prices have decreased by $0.70/bbl in compared to last closing prices. While Brent on Inter Continental Exchange decreased by $0.69/bbl in compared to last trading and was assessed around $56.25/bbl.
• According to reports, the global outlook for oil markets in 2018 could put a dampener on hopes for higher prices. Market players said that supply growth in the final three months of the year would be supportive for oil prices in the fourth quarter. Oil prices could climb close to $60 a barrel in the "very short run."

$1 = Rs. 64.93
Import Custom Ex. Rate USD/ INR: 65.95
Export Custom Ex. Rate USD/ INR: 64.30