Mixed Xylene Weekly Report 24 March 2018

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

• The above given graph focuses on the Mixed Xylene price trend for the current week.
• Domestic prices ofMixed Xylene remained firm for this week. Prices were assessed at the level of Rs.50.5/Kg for Mumbai port and Rs.50/Kg for Kandla port.      

Booking Scenario

INDIA

• Mixed Xylene prices were assessed around Rs.50/Kg at Kandla port and Rs.50.5/Kg for Mumbai port.
• International prices of Isomer grade Mixed Xylene remained stable for this week. Prices were assessed in the range of USD 735-755/MTS with no change in compares to last week’s closing values.
• An important decision has been taken by the Reserve Bank of India (RBI) to ban the lending credit will have an adverse impact on chemical importers in the country. The recent scam in PNB and many other defaulters has hit hard to the Indian banking system. The central banking authority has now decided to put a weight on LC and LOU. The implementation of this law will come in April month. This will in turn affect the GDP growth of the country. An LOU is generally used to fund imports and to avail short-term credit. It is also an undertaking by the issuing bank to pay in case of default by the one on whose behalf it was issued. The Indian importers believe that this ban will have an adverse impact on traders as import cost will shoot up. The most prominent chemicals are Phenol and acetone and other solvents are likely to witness a severe hike in values.
• This week crude oil prices have followed little volatility while increased through the week. On Thursday oil prices fell as investors booked profits after this week's rally, but losses were limited by the continuing efforts of OPEC and its allies to curb supplies.
• On Thursday, closing crude values have decreased. WTI on NYME closed at $64.30/bbl; prices have decreased by $0.87/bbl in compared to last closing prices. While Brent on Inter Continental Exchange decreased by $0.56/bbl in compared to last trading and was assessed around $68.91/bbl. Recently,  market players continue to see fragility in the oil market.
• Profit-taking risks still appear large, strong output growth challenges the market-tightening narrative and the supply deals overdue transitioning remains blanketed in uncertainty.

$1 = Rs. 65.00
Import Custom Ex. Rate USD/ INR: 65.80
Export Custom Ex. Rate USD/ INR: 64.15