MEG Weekly Report 30 June 2018

Weekly Price Trend: 25-06-2018 to 29-06-2018

• The above given graph focuses on the MEG price trend from 25th June to 29th June 2018.  
• Prices remained soft-to-stable for this week. Domestic prices were assessed at the level of Rs.70/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.70 /Kg for bulk quantity.
• CFR China values were assessed around USD 885-905/MT, slightly increased by USD 5/MT for this week. CFR South East Asia assessed around USD 930/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 reduced significantly for this week. FOB Korea values were assessed around USD 1045/MT while CFR China values were assessed around USD 1080/MT.
• 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
• The melt down of Indian currency to its lowest level in this week will put oil prices under great pressure for India. Moreover under pressure of US, Indian government has issued to its oil companies to not to make any oil purchase from Iran will further increase the fuel prices in the country. The next week is likely to witness significant bump in fuel prices as well as petchem prices.
• This week crude oil prices have increased heavily. On Thursday oil prices climbed, with U.S. crude hitting a three-and-a-half year high, bolstered by supply concerns due to U.S. sanctions that could cause a large drop in crude exports from Iran.
• On Thursday, closing crude values have increased. WTI on NYME closed at $73.45/bbl; prices have increased by $0.69/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.23/bbl in compare to last closing price and was assessed around $77.85/bbl.
• On Friday, oil prices dipped amid escalating trade friction between the United States and other major economies, although crude markets remain tight due to supply disruptions and generally high demand.
• As per market report, oil prices have rallied for much of 2018 on tightening market conditions due to record demand and voluntary supply cuts led by OPEC and other producers including Russia. Unplanned supply disruptions from Canada to Libya and Venezuela also have supported prices.
• OPEC plus meetings was that those countries with spare capacity would increase production to keep the market well-supplied."an incremental 1 million bpd from this group is feasible in July" and that this would offset the expected drop in Iranian exports and other declines elsewhere during the second-half of the year.

$1 = Rs. 68.47
Import Custom Ex. Rate USD/ INR: 69.10
Export Custom Ex. Rate USD/ INR: 67.40