MEG Weekly Report 26 May 2018

Weekly Price Trend: 21-05-2018 to 25-05-2018

• The above given graph focuses on the MEG price trend from 21st May to 25th May 2018.  
• Prices remained soft-to-stable for this week. Domestic prices were assessed at the level of Rs.73/Kg for bulk quantity.

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.72 /Kg for bulk quantity.
• CFR China values were assessed around USD 915-935/MT, reduced by USD 15/MT in one week. CFR South East Asia assessed around USD 975/MT.
• FOB Korea values for Ethylene were assessed around USD 1200/MT, while CFR China values were assessed around USD 1280/MT and CFR South East Asia values were assessed around USD 1175/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 1125MT.
• MEG values in China market has been melting down past few weeks. PTA prices have also reduced due to weak demand from downstream industry. On contrary to this there has been consistent hike in PTA values in other markets due to regional shutdown and limited supply
• There has been wide gap between the import price for PTA and its domestic prices. As a result most of the consumers in China are focusing more towards local supply. The demand for PTA is likely to get soggier as traditionally the current season is regarded lull for polyester industry.
• On contrary to China the other markets like Taiwan and European sector is facing the short supply. South Korean company Hanwha Chemical has shut down its Purified Terephthalic Acid unit for maintenance. This shut down has been due to technical problem detected last week. The unit is likely to remain off-stream for around few weeks. The company sources have not specified any details about the restart of unit. Unit is based at Daesan and has the manufacturing capacity of 7,00,000 mt/year. BP chemical the other major producer has also imposed force majeure on its PTA unit.
• Market anticipation for MEG is expected to remain week for few more weeks. Many new units are likely to go on-stream in this year. The new units include CSPC, ECO, CNSG Hongsifang, XPCC Tianying, and Qianxi. MEG prices may weaken further and June average price may be probably lower than May's.

$1 = Rs. 67.75
Import Custom Ex. Rate USD/ INR: 68.65
Export Custom Ex. Rate USD/ INR: 66.95