MEG Weekly Report 2 June 2018

Weekly Price Trend: 21-05-2018 to 25-05-2018

• The above given graph focuses on the MEG price trend from 28th May to 1st June 2018.  
• Prices remained soft-to-stable for this week. Domestic prices were assessed at the level of Rs.72/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 soft for bulk quantity. Prices were assessed at the level of Rs.72 /Kg for bulk quantity.
• CFR China values were assessed around USD 900-920/MT, reduced by USD 15/MT in one week. CFR South East Asia assessed around USD 950/MT.
• FOB Korea values for Ethylene were assessed around USD 1275/MT, while CFR China values were assessed around USD 1335/MT and CFR South East Asia values were assessed around USD 1210/MT.
• On other side Propylene market remained stable for this week. FOB Korea values were assessed around USD 1090/MT while CFR China values were assessed around USD 1130MT.
• With dull regional buying sentiments along with bulk availability from regional sector and the last weak demand from polyester industry all together has led to price fall.
• MEG values in China market has been melting down past few weeks. PTA prices have also reduced due to weak demand from downstream industry. On contrary to this there has been consistent hike in PTA values in other markets due to regional shutdown and limited supply
• There has been wide gap between the import price for PTA and its domestic prices. As a result most of the consumers in China are focusing more towards local supply. The demand for PTA is likely to get soggier as traditionally the current season is regarded lull for polyester industry.
• This week oil prices followed a mixed trend. On Thursday U.S. crude prices sank after a brief rally in the previous session, but as per analysis the recent slump in oil prices won't last much longer.
• On Thursday, closing crude values have remained mixed. WTI on NYME closed at $67.04/bbl; prices have decreased by $1.17/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.09/bbl in compared to last trading and was assessed around $77.59/bbl.
• Oil prices were already heading lower on recent reports that OPEC, Russia and several other producer nations could soon begin winding down their 17-month-old deal to cap output. That agreement has drained a global glut of oil and helped balance the market, but it's now under review due to falling Venezuelan output and renewed U.S. sanctions against Iran.
• Market players said that supply and demand in the oil market are finely balanced, and surging U.S. output might not be enough to offset supply disruptions in Venezuela and Iran. Oil market fundamentals and OPEC policy could support oil at around $70 a barrel or higher.

$1 = Rs. 67.07
Import Custom Ex. Rate USD/ INR: 68.65
Export Custom Ex. Rate USD/ INR: 66.95