MEG Weekly Report 23 June 2018

Weekly Price Trend: 18-06-2018 to 22-06-2018

• The above given graph focuses on the MEG price trend from 18th June to 22nd June 2018.  
• Prices remained soft-to-stable for this week. Domestic prices were assessed at the level of Rs.70/Kg for bulk quantity.

Total import at various ports in the month of May 2018

The above chart depicts the import of MEG at various ports of India in the month of May 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.70 /Kg for bulk quantity.
• CFR China values were assessed around USD 880-910/MT, reduced by USD 35/MT for this week. CFR South East Asia assessed around USD 935/MT.
• FOB Korea values for Ethylene were assessed around USD 1315/MT, while CFR China values were assessed around USD 1380/MT and CFR South East Asia values were assessed around USD 1255/MT.
• On other side Propylene market remained stable for this week. FOB Korea values were assessed around USD 1075/MT while CFR China values were assessed around USD 1100MT.
• Japan based JXTG Nippon Energy & Oil has restarted its Ethylene cracker in this week. Earlier the cracker was shut down on 9th June end for to carry out some repair work. The unit remained off-stream for around 10 days. The cracker is based at Kawasaki in Japan and has the production capacity of 4,04,000 mt/year of Ethylene.
• Inner Mongolia ECO Coal Chemical has run through all processes and are still under commissioning. By June end, CSPC Anhui Huizhou, CNSG Hongsifang and Xinjiang Tianying Petrochemical will start their MEG units, while output increment from coal-based MEG may show in August.
• The PTA unit of Fuhaichuang Petrochemical which was earlier known as Dragon Aromatics will go on-stream in the third quarter of 2018. The unit has been under maintenance for quite a long period.
• In China, Fuhaichuang Petrochemical, formerly known as Dragon Aromatics (Zhangzhou), is planning to resume operations at its complex in the third quarter this year after a prolonged shutdown.
• The unit is based at Zhangzhu in China and has the production capacity of 4.5 m tonnes/year which is comprised of three 1.5m tonne/year lines. The company is likely to restart the third line once a smooth operation at its upstream paraxylene (PX) unit at the site is achieved.
• There has been chaos in international prices as custom Indian exchange rate has also increased to significant level. Crisis in international market due to imposition of trade tariffs on China by US and even India has also imposed tariffs on imports of goods from US.
• This week crude oil prices have followed volatile trend. on Thursday Global benchmark Brent crude extended losses ahead of Friday's meeting of the OPEC, where producers are expected to boost output.
• On Thursday, closing crude values have plunged. WTI on NYME closed at $65.54/bbl; prices have decreased by $0.17/bbl in compared to last closing prices. While Brent on Inter Continental Exchange decreased by $1.69/bbl in compare to last closing price and was assessed around $73.05/bbl.
• Today oil prices rose by more than 1 percent in early Asian trading, pushed up by uncertainty over whether OPEC would manage to agree a production increase at a meeting in Vienna later in the day.
• Iran had been expected to oppose any rise in crude output, but it has now signalled it may support a small increase. As per report, presently oil market had now rebalanced and its aim was to prevent a shortage of crude in future that could squeeze the market.

$1 = Rs. 67.84
Import Custom Ex. Rate USD/ INR: 69.10
Export Custom Ex. Rate USD/ INR: 67.40