MEG Weekly Report 22 April 2017

Weekly Price Trend: 17-04-2017 to 21-04-2017

• The above given graph focuses on the MEG price trend from 17th April to 21st April 2017.  
• Prices reduced significantly for this week in domestic market. Domestic prices were assessed at the level of Rs.54/Kg for bulk quantity with an decrease of Rs.9/Kg by end of the week. After significant rise in last week prices again reached the same level

Total import at various ports in the month of March 2017

The above chart depicts the import of Acetic Acid at various ports of India in the month of March 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 decreased by Rs.9/Kg for bulk quantity.
• CFR India prices were assessed in the range of USD 710-720/MTS. Prices reduced heavily for this week.
• CFR China values decreased by USD 35/MTS in compare to last week’s assessed values and were assessed in the range of USD 690-710/MT
• CFR SEA prices for MEG were assessed around USD 705/MT for this week. There has been heavy reduction of USD 35 in compare to last week’s closing values. FOB Korea values for Ethylene was assessed around USD 1135/MTS while CFR China values for Ethylene were assessed around USD 1175/MTS.
• FOB Korea values for Propylene was assessed around USD 810/MTS while CFR China values were assessed around USD 825/MTS.
• There has been significant fall in MEG values in Asian market since last six months. Prices have been plummeting continuously on back of surplus supply of chemical for China market. This week prices reduced by USD 48 /MT and reached the level of USD 680-690/MT, lowest in last six months. On other there has been continuous rise in feedstock values of Ethylene. CFR NEA prices for Ethylene were assessed around USD 1120/MT and CFR SEA were assessed in the range of USD 1050-1070/MT. According to market participants the thick reason behind this decline has been the surplus inventory at Chinese ports. Around 61,000 mt is available at ports which is again quite high and around 1,60,000 mt will be reaching soon at the ports.
• This week oil prices followed mixed trend. On Wednesday oil slumped after U.S. data showed a smaller-than-expected drop in overall crude stocks and a surprising build in gasoline inventories, which raised worries about excessively high global supply
• According to reports, the surprise builds in gasoline, along with an increase in U.S. production and imports from OPEC nations, pressured prices. With just weeks to go before OPEC and other producers have to sign off on a new deal to hold down production. OPEC technical staff this month is expected to make a recommendation on whether to extend the cuts, and OPEC's monitoring committee meets the day before OPEC's May 25 meeting.
• Market players have said that to prevent a further ballooning in supplies, some OPEC producers including Saudi Arabia and Kuwait are lobbying to extend the pledge to cut production beyond June.
• On Thursday, closing crude values have remained mixed.WTI on NYME closed at $50.27/bbl, prices have decreased by $0.17/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.06/bbl in compared to last trading and was assessed around $52.99/bbl.

$1 = Rs. 64.61
Import Custom Ex. Rate USD/ INR: 65.55
Export Custom Ex. Rate USD/ INR: 63.85