MEG Weekly Report 18 June 2018

Weekly Price Trend: 13-08-2018 to 17-08-2018

• The above given graph focuses on the MEG price trend from 13th August to 17th August  2018.  
• Prices remained stable-to-firm for this week. Domestic prices were assessed at the level of Rs.73/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.73 /Kg for bulk quantity.
• CFR China values were assessed around USD 900-920/MT, significantly reduced by USD 35/MT for this week. CFR South East Asia assessed around USD 940/MT.
• FOB Korea values for Ethylene were assessed around USD 1375/MT, while CFR China values were assessed around USD 1395/MT and CFR South East Asia values were assessed around USD 1255/MT.
• On other side Propylene market increased for this week. FOB Korea values were assessed around USD 1095/MT while CFR China values were assessed around USD 1145/MT.
• There has been significant hike in Ethylene and Propylene values in China market.
• The fresh list of goods  on which China will impose import tariffs from US include MEG. The tariff charges are likely to be around 25% and will be applicable by 23rd August.
• Experts on other side believe that this will not have a major impact on China as it imports only 2% of total MEG import from US. Further new plants will go on-stream which will further increase the capacity and lower the imports.
• US likely to have look for other Asian markets to sell their product, although it is unclear if those markets could absorb all of the material as Asia currently consumes the largest volume of MEG globally. 
• The other major crisis faced by the world is depletion of currencies against dollar. The rupee crossed the mark of Rs.70 against US currency. The ongoing low in global currencies following fears that Turkish economic crisis could engulf world economy. Experts believe that rupee was mainly impacted by a fall in Turkish Lira. Further the RBI intervention helped to recover from heavy losses and pushed the rupee to close at all time low level of 69.91. All the payments in petrochemical industry are done in dollar so this will have an adverse impact on prices of petrochemical products.
• This week crude oil prices have followed volatile trend. On Friday Crude prices edged higher, but were heading for yet another weekly decline on worries that oversupply would weigh on the U.S. market and that trade disputes and slowing global economic growth would slow demand for oil.
• On Friday, closing crude values have increased. WTI on NYME closed at $65.91/bbl. Prices have increased by $0.45/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.40/bbl in compare to last closing price and was assessed around $71.43/bbl.
• As per analysts, despite the bearish factors, prices were prevented from falling further because of U.S. sanctions against Iran, which target the financial sector from August and will include petroleum exports from November.

$1 = Rs. 70.15
Import Custom Ex. Rate USD/ INR: 71.10
Export Custom Ex. Rate USD/ INR: 69.40