MEG Weekly Report 31 March 2018

Weekly Price Trend: 19-03-2018 to 23-03-2018

• The above given graph focuses on the MEG price trend from 26th March to 30th March to 2018.  
• Prices remained variable 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 reduced for bulk quantity. Prices were assessed at the level of Rs.68/Kg for bulk quantity.
• CFR China values were assessed around USD 925-945/MT, increased by USD 35/MT in one week.
• CFR South East Asia assessed around USD 940/MT again increased by USD 35/MT in last one week.
• FOB Korea values for Ethylene were assessed around USD 1390/MT, increased by USD 40/MTS while CFR China values were assessed around USD 1370/MT, increased by USD 10/MTS in one week.
• On other side Propylene market has slightly reduced for this week. FOB Korea values were assessed around USD 1005/MT while CFR China values were assessed around USD 1040MT. With maintenance scheduled in the month of January more progression in values will take place in next few months in Asian market.
• China based CNOOC Huizhou is likely to start MEG unit in the month of June. Unit is based at Guangdong in China and has the production capacity of 400 KT per year. The other Qianxi Coal Chemical to start MEG unit in the month of May or June. Unit is based at Guizhou in China and has the production capacity of 300 KT per year.
• MEG supply is likely to get better in second quarter. In demand side operating rate of downstream weaving sectors has increased to more than 80%, and orders were better than previous expected. Demand from end-users would be a strong support to the market in the second quarter.
• Some market participants also concerned about the startups of new coal-based MEG units. ECO Coal Chemical is expected to start in April, while others are planned to start around May. But it takes time from testing run to getting products. Output from new units would be sold into the market around June. So, MEG supply will be still tight in April and May. 
• This week crude oil prices have followed weak trend but on Thursday oil prices have escalated by 1 percent as the equities markets rallied and as market participants weighed a rise in U.S. crude inventories and production against continued OPEC supply curbs.
• On Thursday, closing crude values have decreased. WTI on NYME closed at $64.94/bbl; prices have increased by $0.56/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.74/bbl in compared to last trading and was assessed around $70.27/bbl.
• Market players said that strong compliance on supply cuts from members of The OPEC and allies like Russia have supported prices. OPEC sources said the group and its allies are likely to keep their deal on cutting output for the rest of 2018 when they meet in June.
• As per market report, China was taking its first steps to pay for imported crude oil in yuan instead of the U.S. dollar. This week marked the launch of the Shanghai crude oil futures contract.

$1 = Rs. 65.17
Import Custom Ex. Rate USD/ INR: 65.80
Export Custom Ex. Rate USD/ INR: 64.15