MEG Weekly Report 20 Jan 2018

Weekly Price Trend: 15-01-2018 to 19-01-2018

• The above given graph focuses on the MEG price trend from 15th Jan to 19th Jan 2018.  
• Prices increased significantly for this week. Domestic prices were assessed at the level of Rs.71/Kg for bulk quantity.

Total import at various ports in the month of December 2017

The above chart depicts the import of MEG at various ports of India in the month of December 2017.

Booking Scenario

The above chart shows the international prices of MEG and its comparison from the previous prices.
INDIA & INTERNATIONAL

• This week domestic prices increased heavily for bulk quantity. Prices were assessed at the level of Rs.71/Kg for bulk quantity.
• CFR China values were assessed around USD 1000-1020MT, with no change in compare to last week’s assessed values.
• CFR South East Asia assessed around USD 1015/MT remained unchanged in compare to last week’s closing values.
• There was significant hike in MEG values last week as downstream product values were building new highs. As week proceeded the temporary hike began to settle down and prices reduced to firmness as prices for Ethylene also lessened.
• FOB Korea values for Ethylene were assessed around USD 1355/MT, reduced by USD 15/MTS while CFR China values were assessed around USD 1385/MT, contrary increased by USD 35/MTS in compare to last week’s closing values.
• Strong buying sentiments coupled with healthy demand has been dominating the Asian markets for price surge.
• Propylene market has also been witnessing firmness in prices. FOB Korea values were assessed around USD 990/MT while CFR China values were assessed around USD 1060MT. With maintenance scheduled in the month of January more progression in values will take place in next few months in Asian markets.
• LBC Tank Terminals (Mechelen, Belgium) and MEGlobal Americas, a subsidiary of MEGlobal—part of Equate Petrochemical (Ahmadi, Kuwait)—have finalized agreements for the design, engineering, construction, and operation of a tank storage terminal at Freeport, Texas. Construction commenced in August 2017, on receipt of the necessary regulatory permits, and the terminal is planned to be operational during 2019. Capacity figures and financial details regarding the investment have not been disclosed. The terminal will mainly handle monoethylene glycol (MEG) and diethylene glycol. The facility will be constructed adjacent to a 700,000-metric tons/year MEG manufacturing plant that MEGlobal is building for completion in 2019, and connected by pipeline.
• Oil prices have followed volatile trend this week. On Thursday Oil rebounded after slipping below $69 a barrel, supported by a record drawdown of U.S. crude stockpiles at the Cushing, Oklahoma delivery hub, despite concerns that OPEC-led output cuts will increase supply from the United States.
• On Thursday, closing crude values have decreased. WTI on NYME closed at $63.95/bbl; prices have decreased by $0.02/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 $69.31/bbl.
• As per report, the upside is now limited for oil prices. U.S. oil producers will ramp up production in the coming months. Some traders said that prices were unlikely to fall far due to the OPEC-led curbs and the risk of further disruptions.

$1 = Rs. 63.85
Import Custom Ex. Rate USD/ INR: 64.80
Export Custom Ex. Rate USD/ INR: 63.10