MEK Weekly Report 06 Oct 2018

Weekly Price Trend: 01-10-2018 to 05-10-2018

• The above graph shows the weekly price trend of MEK for the current week.
• As per the above graph, this week MEK prices have increased in compare to previous week and at the end of the week MEK prices were assessed at the level of Rs. 94/Kg for Kandla port.

Booking Scenario

INDIA & INTERNATIONAL

• For the current week, domestic prices of MEK have increased in compare to previous week and were assessed at the level of Rs 94/kg.
• This week in international market, prices of MEK have increased in compare to previous week.
• This week MEK prices have increased on shortage of supply in near term.
• China based CNOOC Zhongjie has shut down its MEK unit for maintenance turnaround. Many other small units of MEK based in China have been shutdown for maintenance.
• The other firm Fushun PetroChina will shut down its unit as its will change the catalyst in its plant.
• The other reason for this shutdown as firms has to follow the norm of Chinese government which is “blue-sky policy” in China. In accordance with the blue-sky policy in China, MEK plants would have to reduce their operating rates; and some smaller plants would even shut during the winter period because of the regulation on coal emissions. Coal is one of the raw materials in producing MEK.
• Presently MEK demand has been bullish while availability of material has been limited on account of this prices have increased.
• As per report, demand likely to pick up in Q4 across all regions.
• Recently some market players are planning to stock material due to upcoming shortage of supply.
• In domestic market, MEK prices increased at a comparatively modest rate of 3.1% over the same period because of the monsoon and influx of cargoes from Europe.
• This week CFR Northeast Asia and Southeast Asia prices were assessed at $1,180/tonne and $1,175/tonne  respectively.

  $1 = Rs. 73.78
 Import Custom Ex. Rate USD/ INR: 74.60
 Export Custom Ex. Rate USD/ INR: 72.90