MEG Weekly Report 31 March 2017

Weekly Price Trend: 27-03-2017 to 31-03-2017

• The above given graph focuses on the MEG price trend from 27th March to 31st March 2017.  
• Prices remained significantly improved for this week. Domestic prices were assessed at the level of Rs.62/Kg for bulk quantity by end of the week. Since past few weeks there has been constant decline in domestic values of MEG.

Booking Scenario

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

• This week domestic prices improved by Rs.2/Kg for bulk quantity.
• CFR India prices were assessed in the range of USD 940-960/MTS. Prices remained unchanged for this week.
• CFR China values decreased by USD 10/MTS in compare to last week’s assessed values and were assessed in the range of USD 740-760/MT
• CFR SEA prices for MEG were assessed around USD 755/MT for this week. There has been slight reduction of USD 5 in compare to last week’s closing values.FOB Korea values for Ethylene were assessed around USD 1095/MTS while CFR China values for Ethylene were assessed around USD 1135/MTS.
• FOB Korea values for Propylene was assessed around USD 830/MTS while CFR China values were assessed around USD 855/MTS.
• This week with little volatility prices remained on the higher note along with high expectations of extended supply cut. Brent and WTI crude both were assessed above $50 per barrel. Crude prices remained over 4 percent higher than they were on Tuesday. On Thursday prices have escalated as Kuwait gave its backing for an extension of OPEC production cuts in an attempt to reduce global oversupply.
• Market players said that oil prices will remain on higher note as OPEC and non-OPEC oil producing giants like Russia are likely to continue their production cut deal seeking to drive prices higher.
• There remains doubt that the output cuts will go deep enough for the world's bloated markets to leading to tightening of supply soon and significantly lift prices, especially as other producers that are not part of the agreement could step in to fill the supply gap. Moreover some players have said that there is a tremendous amount of stock in the markets and to expect a major increase in the price is not very realistic
• On Thursday, closing crude values have increased.WTI on NYME closed at $50.35/bbl, prices have increased by $0.84/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.54/bbl in compared to last trading and was assessed around $52.96/bbl.

$1 = Rs. 64.85
Import Custom Ex. Rate USD/ INR: 66.20
Export Custom Ex. Rate USD/ INR: 64.50