MEG Weekly Report 18 March 2017

Weekly Price Trend: 13-03-2017 to 17-03-2017

• The above given graph focuses on the MEG price trend from 13th March to 17thMarch 2017.  
• Prices remained unchanged for this week. Domestic prices were assessed at the level of Rs.65/Kg for bulk quantity by end of the week. Since past few weeks there has been constant decline in domestic values of MEG.

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 bulk quantity. Prices were assessed around Rs.65/Kg for bulk quantity.
• CFR India prices were assessed in the range of USD 940-960/MTS. Prices remained unchanged for this week.
• CFR China values increased by USD 50/MTS in compare to last week’s assessed values and were assessed in the range of USD 815-835/MT
• CFR SEA prices for MEG were assessed around USD 820/MT for this week. There has been rise by USD 40/MTS in compare to last week’s closing values. CFR China values for PTA were assessed around USD 650/MTS while CFR China values for Propylene were assessed around USD 895/MTS.
• This week oil prices remained mixed with heavy fluctuation throughout the week. On Thursday oil prices plunged after a heavy leap as rising output from the U.S. remained a threat to efforts by other major producers to rebalance the market. Oil prices continued to find some support, while on wednesday prices declined due to heavy supply along with weakening of dollar on back of the Federal Reserve’s less-hawkish-than-expected rate announcement.
• According to reports, Global oil inventories rose for the first time in six months in January, despite the OPEC agreement. Iraq is planning to boost output later in the year even as the OPEC member reaffirmed its commitment to the group’s decision to cut production to counter a global glut.
• Some market players believe that in near term crude oil prices are likely to trade positive on the back of surprise drawdown in U.S. crude inventories.
• On Thursday, closing crude values have decreased.WTI on NYME closed at $48.75/bbl, prices have decreased by $0.11/bbl in compared to last closing prices. While Brent on Inter Continental Exchange decreased by $0.07/bbl in compared to last trading and was assessed around $51.74/bbl.
• The strong mandate of state elections last week will have a significant impact on economic reforms in the country and will boost it to higher level. This in turn has led to strengthening of Indian currency against dollar and has improved to its highest level in last two years. This will certainly have positive effect on petchem sector as majority of the petrochemical is being imported in the country.

$1 = Rs. 65.46
Import Custom Ex. Rate USD/ INR: 66.20
Export Custom Ex. Rate USD/ INR: 64.50