C9 Weekly Report 13 Oct 2018

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

• The above given graph focuses on the C9 price trend for the current week.
• Domestic prices of C9 remained firm and have increased significantly for this week. Prices were assessed at the level of 66/kg for bulk quantity.

Booking Scenario

INDIA& INTERNATIONAL

• Domestic prices increased by Rs.2/Kg for this week. The rise has been in all major petrochemical products in domestic market on back of limited supply along with rising of crude prices.
• Prices in international market also witnessed a significant hike for this week. CIF India prices were assessed at the level of USD 890-910/MTS in this week.
• 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.
• The reserve cut, the fourth by the People’s Bank of China (PBOC) this year, came after Beijing pledged to speed up plans to invest billions of dollars in infrastructure projects as the economy shows signs of cooling further.

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