MEG Weekly Report 21 July 2018

Weekly Price Trend: 16-07-2018 to 20-07-2018

• The above given graph focuses on the MEG price trend from 16th July to 20th July 2018.  
• Prices remained soft-to-stable for this week. Domestic prices were assessed at the level of Rs.68/Kg for bulk quantity.

Total import at various ports in the month of June 2018

The above chart depicts the import of MEG at various ports of India in the month of June 2018.

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.69 /Kg for bulk quantity.
• CFR China values were assessed around USD 890-910/MT, slightly abridged by USD 5/MT for this week. CFR South East Asia assessed around USD 930/MT.
• FOB Korea values for Ethylene were assessed around USD 13465MT, while CFR China values were assessed around USD 1400/MT and CFR South East Asia values were assessed around USD 1275/MT.
• On other side Propylene market increased for this week. FOB Korea values were assessed around USD 1045/MT while CFR China values were assessed around USD 1070/MT.
• Petrochemical Corporation of Singapore has shut down its cracker unit for annual maintenance. The unit is expected to remain off-stream for around 45 days. Unit is based at Jurong island of Singapore and has the manufacturing capacity of 4,50,000 mt/year of Ethylene Qianxi Coal Chemical has shut down its MEG unit for shutdown. The unit has been shutdown as per annual maintenance program. The unit will resume its production in the month of August 2018. Unit is based at Qianxi Guizhou, China, the MEG unit has a production capacity of 300,000 mt/year.
• Japanese petrochemical firm Mitsui Chem will restart its steam cracker in the mid of August. Earlier the un it was shut down in June due to fire at a utility plant. The steam cracker is based at Osaka in Japan and has the production capacity of  500,000 mt/year of ethylene and 300,000 mt/year of propylene.
• South Korea based Hanwha Total is planning to increase its Olefins production capacity by the second quarter of 2019. The plan involves installing of a LPG-cracking unit to the naphtha-fed steam cracker, enabling it to raise olefins production capacity to 1.4 million mt/year of ethylene from 1.09 million mt/year currently, and propylene to 1.06 million mt/year from 930,000 mt/year. Before this plan the cracker unit will undergo maintenance for around 45 days. Hanwha Total is a 50:50 joint venture between South Korea's Hanwha and France's Total.
• This week oil prices have followed mixed trend. On Thursday, Brent crude fell as concerns about mounting supply returned after a brief rally on comments that Saudi Arabia's exports would fall in August. Crude also strengthened on forecasts that inventories at the U.S. oil delivery hub for WTI in Cushing, Oklahoma fell 1.8 million barrels, or 6.2 percent.
• On Thursday, closing crude values have remained mixed. WTI on NYME closed at $69.46/bbl; prices have increased by $0.70/bbl in compared to last closing prices. While Brent on Inter Continental Exchange decreased by $0.32/bbl in compare to last closing price and was assessed around $72.58/bbl.
• As per report, Saudi Arabia expects its crude exports to drop by roughly 100,000 bpd in August as the kingdom limits excess production.
• As per report, Saudi Arabia's crude oil exports in July would be roughly equal to June levels. Despite international oil markets being well balanced in the third quarter, there would still be substantial stock draws due to robust demand.

$1 = Rs. 68.87
Import Custom Ex. Rate USD/ INR: 69.60
Export Custom Ex. Rate USD/ INR: 67.90