MEG Weekly Report 25 March 2017

Weekly Price Trend: 20-03-2017 to 24-03-2017

• The above given graph focuses on the MEG price trend from 20th March to 24thMarch 2017.  
• Prices remained significantly down for this week. Domestic prices were assessed at the level of Rs.60/Kg for bulk quantity by end of the week. Since past few weeks there has been constant decline in domestic values of MEG.

Total import at various ports in the month of February 2017

The above chart depicts the import of MEG at various ports of India in the month of February 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 reduced heavily by Rs.5/Kg for bulk quantity.
• CFR India prices were assessed in the range of USD 940-960/MTS. Prices remained unchanged for this week.
• CFR China values decreased by USD 75/MTS in compare to last week’s assessed values and were assessed in the range of USD 740-760/MT
• CFR SEA prices for MEG were assessed around USD 755/MT for this week. There has been decline of USD 40/MTS in compare to last week’s closing values.FOB Korea values for Ethylene were assessed around USD 1115/MTS while CFR China values for Propylene were assessed around USD 1160/MTS.
• FOB Korea values for Propylene were assessed around USD 840/MTS while CFR China values were assessed around USD 885/MTS.
• There has been constant tight supply of Ethylene and Propylene in the Asian markets. Moreover there has been constant sliding in crude values on back of heavy supply ib the global market. According to sources in the next many units of MEG are likely to undergo maintenance resulting into tightened supply of MEG in the global markets.
• Price trend for crude values remained thin with very few changes. Oil prices plunged initially as U.S. crude inventories increased faster than expected, piling pressure on OPEC to extend output cuts beyond June. Now investors await a meeting between OPEC and its allies that may signal whether they will extend output curbs.
• As per sources, American crude output continued to rise along with inventories, while OPEC won’t formally decide until May whether to extend production curbs, officials will meet this weekend in Kuwait to discuss their deal’s progress.
• Market analyst said that without the production cut agreement, prices could basically target the low-to-mid $30s, players are positive that they will extend production cut. Some players are anticipating lowering prices due to high supplies.
• On Monday WTI were closed at $49.31 and Brent closed at $51.76 while on Thursday, closing crude values have decreased.WTI on NYME closed at $47.70/bbl, prices have decreased by $0.34/bbl in compared to last closing prices. While Brent on Inter Continental Exchange decreased by $0.08/bbl in compared to last trading and was assessed around $50.56/bbl.

$1 = Rs. 65.41
Import Custom Ex. Rate USD/ INR: 66.20
Export Custom Ex. Rate USD/ INR: 64.50