MEG Weekly Report 07 April 2018

Weekly Price Trend: 02-04-2018 to 06-04-2018

• The above given graph focuses on the MEG price trend from 2nd April to 6th April 2018.  
• Prices remained vulnerable for this week. Domestic prices were assessed at the level of Rs.68/Kg for bulk quantity.

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 firm for bulk quantity. Prices were assessed at the level of Rs.68/Kg for bulk quantity.
• CFR China values were assessed around USD 965-985/MT, increased by USD 40/MT in one week.
• CFR South East Asia assessed around USD 980/MT again increased by USD 40/MT in last one week.
• FOB Korea values for Ethylene were assessed around USD 1395/MT, increased by USD 5/MTS while CFR China values were assessed around USD 1375/MT, increased by USD 5/MTS in one week.
• On other side Propylene market has slightly reduced for this week. FOB Korea values were assessed around USD 1005/MT while CFR China values were assessed around USD 1040MT. With maintenance scheduled in the month of January more progression in values will take place in next few months in Asian market.
• China based CNOOC Huizhou is likely to start MEG unit in the month of June. Unit is based at Guangdong in China and has the production capacity of 400 KT per year. The other Qianxi Coal Chemical to start MEG unit in the month of May or June. Unit is based at Guizhou in China and has the production capacity of 300 KT per year.
• MEG supply is likely to get better in second quarter. In demand side operating rate of downstream weaving sectors has increased to more than 80%, and orders were better than previous expected. Demand from end-users would be a strong support to the market in the second quarter.
• China’s company Sinopec Zhenhai Refining and Chemical has announced its maintenance schedule for its naphtha cracker unit. The unit is likely to go off-stream in the second half of May for scheduled maintenance turnaround. The cracker has the production capacity of 1 million mt/year of ethylene, 550,000 mt/year of propylene and 180,000 mt/year of butadiene.
• This week crude oil prices have remained volatile. On Thursday oil prices increased from gains in U.S. equities markets as trade tensions between China and the United States eased, but the advance was limited by strength in the dollar.
• On Thursday, closing crude values have increased. WTI on NYME closed at $63.54/bbl; prices have decreased by $0.17/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.31/bbl in compared to last trading and was assessed around $68.33/bbl.
• As per report, U.S. crude production hit a new high, but that was not enough to change the overall bullishness. OPEC and its allies are collectively curbing 1.8 million barrels per day of crude output to help eliminate a global oil glut. The cuts run until the end of 2018 but Saudi Arabia has said they could be extended in some form into 2019.

$1 = Rs. 64.96
Import Custom Ex. Rate USD/ INR: 65.90
Export Custom Ex. Rate USD/ INR: 64.20