MEG Weekly Report 14 Oct 2017

Weekly Price Trend: 09-10-2017 to 13-10-2017

• The above given graph focuses on the MEG price trend from 9th Oct to 13th Oct 2017.  
• Prices remained unchanged for this week. Domestic prices were assessed at the level of Rs.66/Kg with no changes 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 decline in domestic values. Prices were assessed at the level of Rs.66/Kg for bulk quantity.
• CFR China values were assessed around USD 840-860/MT, increased by USD 25/MTS in compare to last week’s assessed values.
• Tightening of pollution norms in China has been curtailing the production of the county to greater extent. Manufacturers are bound to produce the chemical in certain limit otherwise will face strict penalties by the government. Implementation of new environmental laws in China has already caused a decline in its chemicals exports and the trend is likely to accentuate in next few years. This has led to limited supply of the chemical within country and fall in exports. This upsurge has led to surging of cost of material and rise in manufacturing cost.
• This is the reason in last few months there has been hike in values of many petrochemical products in China with higher demand in downstream industry.
• There has been continuous oscillation in crude values for this week. On Thursday oil prices rebounded from earlier losses, but ended lower on the day, after the Energy Department reported a larger-than-expected decline in U.S. inventories and a falloff in weekly production.
• On Thursday, crude values closed on lower note. WTI on NYME closed at $50.60/bbl, prices have decreased by $0.70/bbl in compared to last closing prices. While Brent on Inter Continental Exchange decreased by $0.69/bbl in compared to last trading and was assessed around $56.25/bbl.
• According to reports, the global outlook for oil markets in 2018 could put a dampener on hopes for higher prices. Market players said that supply growth in the final three months of the year would be supportive for oil prices in the fourth quarter. Oil prices could climb close to $60 a barrel in the "very short run."

$1 = Rs. 64.93
Import Custom Ex. Rate USD/ INR: 65.95
Export Custom Ex. Rate USD/ INR: 64.30