Butyl Acetate Weekly Report 13 Oct 2018

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

• The above graph focuses on the weekly price trend of Butyl Acetate for the current week.
• Compares to previous week Butyl Acetate prices slightly increased for this week.
• Butyl Acetate prices were assessed at the level of Rs.96/Kg for Mumbai and Rs.94/Kg for Kandla ports of India.

Booking Scenario

The above chart shows the international prices of Butyl Acetate and its comparison from the previous prices. These booking prices for CIF India are for 0% duty.

INDIA & INTERNATIONAL

• Butyl Acetate prices improved for this week in domestic market. The rise has been in the entire petrochemical product chain throughout this week. Domestic market is flooded with inflation in petrochemical product values in particularly due to swelling of crude prices.
• Prices were assessed at the level of Rs.96/Kg for Mumbai and for Rs.94/Kg Kandla port for bulk quantity.
• Prices in the international market remained firm with no change for this week. CIF India prices were assessed in the range of USD 1230-1250, stable in compare to last week’s
• 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