MEG Weekly Report 28 July 2018

Weekly Price Trend: 23-07-2018 to 27-07-2018

• The above given graph focuses on the MEG price trend from 23rd July to 27th July 2018.  
• Prices remained soft-to-stable for this week. Domestic prices were assessed at the level of Rs.68/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.69 /Kg for bulk quantity.
• CFR China values were assessed around USD 900-920/MT, slightly increased by USD 10/MT for this week. CFR South East Asia assessed around USD 945/MT.
• FOB Korea values for Ethylene were assessed around USD 1355MT, while CFR China values were assessed around USD 1370/MT and CFR South East Asia values were assessed around USD 1255/MT.
• On other side Propylene market increased for this week. FOB Korea values were assessed around USD 1065/MT while CFR China values were assessed around USD 1080/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.
• Crude prices have been on increasing trend for this week.  On Wednesday US government released the dats regarding the low inventory levels of crude. The inventory levels have reduced at max since 2015. With low inventory the worries about oversupply has now reduced which has affected the market in last few weeks.
• Oil prices rose on Thursday as Saudi Arabia suspended its shipments through strait in the Red Sea following an attack on two oil tankers by Yemen.
• Brent futures rose 61 cents to settle at $74.54 a barrel, a 0.8 percent gain. The contract earlier touched $74.83 a barrel, highest since July 16. U.S. West Texas Intermediate (WTI) crude futures were up 31 cents, settling at $69.61, a 0.5 percent gain.

$1 = Rs. 68.65
Import Custom Ex. Rate USD/ INR: 69.60
Export Custom Ex. Rate USD/ INR: 67.90