MEG Weekly Report 30 Sep 2017

Weekly Price Trend: 25-09-2017 to 29-09-2017

• The above given graph focuses on the MEG price trend from 25th Sept to 29th Sept 2017.  
• Prices increased significantly for this week. Domestic prices were assessed at the level of Rs.67/Kg for bulk quantity, increased by Rs.2/Kg for bulk quantity in compare to last week’s closing values.

Booking Scenario

The above chart shows the international prices of MEG and its comparison from the previous prices.
INDIA & INTERNATIONAL

• This week domestic prices witnessed a rise in values. Prices were assessed at the level of Rs.67/Kg for bulk quantity.
• CFR China values were assessed around USD 865-885/MT, reduced by USD 20/MTS in compare to last week’s assessed values.
• CFR China Ethylene values were assessed around USD 1345/MT while FOB Korea values were assessed around USD 1375/MT.
• Lowering of MEG values in China market has been particularly due to lower demand from the downstream industry. The major polyester industries will resume their production by end of September. This will boost demand in the later part of this year.
• This week there has been significant hike in crude values. Prices has reached too its highest level since April in this year. Crude values rose above $ 50/barrel for the first time. Both the contracts have increased by more than 19% since /June.
• This week oil prices have followed mixed trend. Investors have really gained confidence in oil, after the OPEC cuts that were originally discussed earlier in the year are starting to take shape here, and oil production is being curbed.
• On Thursday, closing crude values have plunged.WTI on NYME closed at $51.56/bbl, prices have decreased by $0.58/bbl in compared to last closing prices. While Brent on Inter Continental Exchange decreased by $0.49/bbl in compared to last trading and was assessed around $57.41/bbl. Due to the combination of production cuts and growing demand, oil could head up to its 2017 high, just above $55, or even $60 per barrel by year-end. A global supply glut has plagued the market for several years, and OPEC member countries and non-member producers have vowed to implement cuts to curb such oversupply.

$1 = Rs. 65.28
Import Custom Ex. Rate USD/ INR: 65.40
Export Custom Ex. Rate USD/ INR: 63.70