MEG Weekly Report 06 May 2017

Weekly Price Trend: 01-05-2017 to 05-05-2017

• The above given graph focuses on the MEG price trend from 1st May to 5th May 2017.  
• Prices reduced slightly for this week in domestic market. Domestic prices were assessed at the level of Rs.53/Kg for bulk quantity with no change 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 remained unchanged for this week. Prices were assessed at the level of Rs.53/Kg for bulk quantity.
• CFR India prices were assessed in the range of USD 640-660/MTS. Prices reduced heavily for this week.
• CFR China values decreased by USD 5/MTS in compare to last week’s assessed values and were assessed in the range of USD 680-700/MT
• CFR SEA prices for MEG were assessed around USD 695/MT for this week. There has been slight reduction of USD 5 in compare to last week’s closing values. FOB Korea values for Ethylene was assessed around USD 1160/MTS while CFR China values for Ethylene were assessed around USD 1205/MTS.
• FOB Korea values for Propylene was assessed around USD 790/MTS while CFR China values were assessed around USD 805/MTS.
• Many MEG units based at China have scheduled their annual maintenance plan in this quarter. Yangmei Chemical of China is planning to shut its MEG unit for brief maintenance period. This MEG unit is coal based unit. The unit is likely to go off-stream on 8th May and will remain under maintenance for around two weeks. The unit is based at Shenzhou in Hebei province of China and has the production capacity of 2,20,000 mt/year.
• MEG Plant is likely to undergo maintenance by BASF Shanghai in the month of May. Unit is based in China and has the production capacity of 2,26,000 mt/year. The unit is likely to remain off-stream for around three weeks.
• PTTGlobal has announced its schedule to shut its unit no.1 cracker unit for maintenance. The olefin unit no1 is likely to undergo maintenance in May end and is expected to remain off-stream for around 40 days. It also operates another olefin at the same location. The unit no1 is likely to undergo maintenance in the May end and will remain off-stream for around two weeks.
• Unit is located at Map Ta Phut in Thailand. Unit no1 has the production capacity of  ethylene around 5,15,000 mt/year & a propylene of 3,10,000 mt/year and the unit no.2 unit has an ethylene production capacity of 4,00,000 mt/year & a propylene production capacity of 50,000 mt/year.
• Price trend in crude values continue to remain volatile. As week proceeded the weakening of crude values was observed. On Thursday oil prices crashed to five-month lows as concerns about global oversupply wiped out all of the price gains since OPEC's move to cut output.
• Analysts agreed the steep price falls would likely force OPEC members to extend production cuts later this month, but the prospect of deeper cuts appeared wiry. Again OPEC is scheduled to meet on May 25 to decide whether to extend the cuts.
• On Thursday, closing crude values decreased.WTI on NYME closed at $45.52/bbl, prices decreased by $2.30/bbl in compared to last closing values. While Brent on Inter Continental Exchange decreased by $2.41/bbl in compared to last trading and was assessed around $48.38/bbl.
• Market experts believe that the current rate of cuts is sufficient to result in demand outstripping global output by 1 million barrels a day in the second half of 2017 as seasonal demand picks up. It is becoming apparent that the profit margins of many of the chemical majors could be improved as oil prices have been declining with great pace.

$1 = Rs. 64.37
Import Custom Ex. Rate USD/ INR: 65.10
Export Custom Ex. Rate USD/ INR: 63.40