MEG Weekly Report 29 Sep 2018

Weekly Price Trend: 24-09-2018 to 28-09-2018

• The above given graph focuses on the MEG price trend from 24th Sept to 28th Sept 2018.  
• Domestic prices remained vulnerable and declined by end of the week. Domestic prices were assessed at the level of Rs.76/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 weak for bulk quantity. Prices were assessed at the level of Rs.76/Kg for bulk quantity.
• CFR China values were assessed around USD 875-895/MT, increased by USD 20/MTS for this week. CFR South East Asia assessed around USD 900/MT. CFR India price were assessed around USD 900/MT.
• FOB Korea values for Ethylene improved for this week and were assessed around USD 1250/MT, while CFR China values were assessed around USD 1290/MT and CFR South East Asia values were assessed around USD 1155/MT.
• On other side Propylene market increased for this week. FOB Korea values were assessed around USD 1135/MT while CFR China values were assessed around USD 1160/MT.
• In compare to MEG values prices for Ethylene and Propylene has reduced heavily in the international market.
• Pre-holiday stocking has hit the prices adversely in international market. Chinese traders have opted this stand in order to avoid any crisis sort of condition post holidays and to make sure that their activities continue without any hurdle post this long week.
• There has been slowdown in Asian market as China the leader of petrochemical industry in Asiatic region has pulled down itself from any fresh trading. There will be nation holidays in China next as a result traders are reluctant to make any new purchases.
• China market will remain closed for next week as the nation will be celebrating Golden week festival.
• Continuous surge in crude prices has heated the global oil market. Crude prices are likely to cross the mark of USD 100 in next few weeks.
• According to Petrochemical giant Total, the supply disruptions and the delay time associated with OPEC’s ability to increase production could pull up the price to $100 per barrel. This in turn will hamper the economy and the oil industry.
• Disruptions in supply coming from Iran, Venezuela, and Libya give strong support to oil prices and they may head into triple-digit territory. On the other hand, although OPEC has assured to boost production, but output hasn’t increased so much. Saudi Arabia has capacity of 11 million bpd, but boosting production from current levels would need time, because they have to mobilize rigs.
• US Sanctions will surely trigger a dramatic shortfall in global supply. And the sanctions are widely expected to have an immediate impact on Iran's oil exports, although estimates of exactly how much of the country's oil could disappear from November 4 vary widely.
• Some energy market analysts expect around 500,000 barrels per day (bpd) to disappear once U.S. sanctions against Iran come into force, while others have warned as much as 2 million bpd could come offline over the coming months.

$1 = Rs. 72.48
Import Custom Ex. Rate USD/ INR: 73.65
Export Custom Ex. Rate USD/ INR: 71.95