MEG Weekly Report 02 Sep 2017

Weekly Price Trend: 28-08-2017 to 01-09-2017

• The above given graph focuses on the MEG price trend from 28thAugust to 1st Sept 2017.  
• Prices increased significantly for this week. Domestic prices were assessed at the level of Rs.62/Kg for bulk quantity, increased by Rs.1/Kg for bulk quantity in compare to last week’s closing values.

Booking Scenario

The above chart shows the international prices of MEG and its comparison from the previous prices.
INDIA & INTERNATIONAL

• This week domestic prices witnessed a rise in values. Prices were assessed at the level of Rs.62/Kg for bulk quantity.
• CFR China values were assessed around USD 920-940/MTS with a rise of USD 80/MTS in compare to last week’s assessed values.
• FOB Korea Ethylene values were assessed around USD 1220/MTS while CFR China values were assessed around USD 1285/MTS.
• This week has been full of pains and agony due to natural calamities. On one side Texas has been facing the worst floods in the history of US. Houston and Louisiana has been the largely evacuated as floods has reached everywhere.
• The major petrochemical plants of the country are located on these sites. To take a precautionary action major companies like Exxon Mobil, LyondellBasel, Celanese and many more has shut down their units abruptly.  Formosa has shut down its ports and units along with Dow chemical. Petrobras has shut down its Pasadena refinery. Shell has shut down its refinery and unit. Arkema reported explosion in its unit on Thursday.
• Most of the US based MEG facilities are located in Texas. Due to this hurricane around 60% of MEG production has been affected. Huntsman MEG units are already shut down under maintenance schedule. Production loss during this shut down would be around 50-60 KT.
• Formosa Point Comfort olefins 1 and olefins 2, are shut down and restart date has not been specified yet.
• One of the leading petrochemical manufacturers LyondellBasell declared force majeure on PE after shutdowns at Matagorda, Chocolate Bayou and La Porte, Texas. It has declared force majeure on several products including ethylene oxide (EO), ethylene glycols -(EG), propylene glycol (PG), glycol ethers after issues at Bayport, Texas.
• LyondellBasell had a power supply interruption at Channelview olefins and methanol. Earlier, market sources said the company had shut down one of its two crackers.
• In India too, the heavy rainfall continue to maintain its fury. This time it was Gujarat and Maharashtra facing heavy rainfall and flood like situation. The major commercial city of India Mumbai has been hard hitten by heavy rainfall India. Mumbai was all over in water for 2 days paralyzing the city and its residents. All the transportation and city centers were closed due to heavy rainfall across the city.
• The international prices are likely to soar up as due to abrupt shut downs there will be limited supply of the chemicals across the international market.
• The major companies have not decided yet to when to resume their production. At first they are likely to check out to what extent there has been damage in their units and refineries.

$1 = Rs. 64.02
Import Custom Ex. Rate USD/ INR: 65.15
Export Custom Ex. Rate USD/ INR: 63.45