Mixed Xylene Weekly Report 13 Oct 2018

Weekly Price Trend: 10-10-2018 to 12-10-2018

• The above given graph focuses on the Mixed Xylene price trend for the current week.
• Domestic prices ofMixed Xylene increased significantly for this week. Prices were assessed at the level of Rs.75/Kg for Mumbai and Rs.74/Kg for Kandla port.

Booking Scenario

INDIA

• Mixed Xylene prices were assessed around Rs.74/Kg at Kandla port and Rs.75/Kg for Mumbai port.
• International prices of Isomer grade Mixed Xylene has improved for this week. Prices for FOB Korea were assessed in the range of USD 915-935MT increased by USD 10/MT for this week.
• CFR SEA values were assessed in the range of USD 940/MTS increased by USD 10/MT for this week.
• In a recent development, Reliance Industries will officially start negotiating and reporting the Asian Contract Price for paraxylene from January 2019. Reliance has entered into PX contracts with most ACP negotiators in Asia since launching trial ACP negotiations in early 2017. Reliance is currently the second largest PX producer globally with a total nameplate capacity of 4.2 million mt/year. Its largest PX unit at Jamnagar, with a capacity of 2.2 million mt/year, started commercial production in January 2017.
• There are currently five PX ACP sellers in Asia: Japan's JXTG Nippon Oil & Energy and Idemitsu Kosan, South Korea's S-Oil and SK Global Chemical, and US major ExxonMobil. The last major settlement for PX ACP was at $1,340/mt CFR Asia in September.
• Last week there was strong rally for crude prices and was expected to cross the mark of USD 100/bbl very soon. But this week scenario was totally different. Brent crossed the mark of $86 on Tuesday , lowered in last two days on back of investors sell off in the trading.
• The main story driving the oil market remains the loss of Iranian crude exports ahead of the full renewal of U.S. sanctions on Nov. 4. That deadline is still frightening large over the market and could help push oil prices back up.
• All the major nations unanimously agree that with Iran sanctions, a large chunk of oil will be removed from the market. How strong its impact is beyond everybody’s imaginations.
• Emerging markets like India are really struggling with higher oil prices coupled with continuous currency depreciation.
• Indian Rupee has depreciated more than by 15% year-to-date. Higher crude oil prices, demand from defense and oil marketing firms have contributed to the latest bout of weakness. Rupee was overvalued on trade weighted real effective exchange rate.
• China market is also facing the heat of rise in crude prices and deprecation of its own currency. Further the trade tariffs with US will affect the Chinese economy in long run. To check its impact China’s Central Bank has cut down the reserve requirement ratios (RRRs) by one per cent from October 15 which will inject a net USD 109.2 billion in cash into the banking system.
• The reserve cut, the fourth by the People’s Bank of China (PBOC) this year, came after Beijing pledged to speed up plans to invest billions of dollars in infrastructure projects as the economy shows signs of cooling further.

$1 = Rs. 73.54
Import Custom Ex. Rate USD/ INR: 74.60
Export Custom Ex. Rate USD/ INR:  72.90