N-Butanol Weekly Report 29 Sep 2018

Weekly Price Trend: 24-09-2018 to 28-09-2018

• The above given graph focuses on the N-Butanol price trend for the current week.
• If we take a quick look at the above given weekly prices then it can be observed that the prices of N-Butanol have plunged this week in compares to previous week and at the end of this week prices were assessed at the level of Rs. 87/Kg at Kandla port.

Booking Scenario

The prices of N-Butanol are also affected by duties that are there for different countries. For example, there is 7.5% duty on South Africa and the Europe Zone. And there is 2.5% duty on Malaysia. These prices are for full duty (7.5%) for US, Europe region.

INDIA & INTERNATIONAL

• This week domestic prices of N-Butanol have plunged and were assessed at Rs.87/Kg for Kandla port.
• This week International N-Butanol prices have remained firm.
• This week CIF India N-Butanol prices have remained firm as no major deals and discussion has been heard.
• US September N-Butanol prices rise on feedstock propylene pressure.
• In Europe market N-Butanol market is moving with firm velocity.
• CFR China prices of propylene were evaluated at USD 1060/mt.
• FOB Korea prices of propylene were evaluated at USD 1135/mt.
• South East Asia prices of propylene were evaluated at USD 1170/mt.
• This week N-Butanol prices have remained firm on firm buying sentiments from end users while feedstock prices have increased.
• Presently traders in some markets were hesitant to make big purchases ahead of China’s National Day holiday on 1-7 October, also called a Golden Week.
• In the feedstock propylene market, northeast Asia prices have hit a 2018 high on the back of tight supply and restocking activities. supply of propylene has been tight in northeast Asia due to ongoing turnarounds at production facilities in Japan, while demand has slightly improved as some buyers in China were looking to snap up cargoes before markets close next week.
• But as plants will continue to run during the holiday, there are concerns that an expected build-up in domestic propylene inventory could weigh on prices post-holiday.
• Crude prices are making new heights. On Thursday prices slightly eased with US president urging OPEC to bring prices down. Experts believe that Brent will soon cross the mark of USD 80 after gap of four years. US President would least want the crude prices to go high with mid election in next few months.
• The Iranian sanctions are making hard for the Asian countries which are the consumers of Iranian crude. Many buyers have already cut Iranian purchases ahead of the new regulations. It is unclear whether producers such as Saudi Arabia, Iraq and Russia can compensate for lost supply.
• The Organization of the Petroleum Exporting Countries and other producers, including Russia, meet on Sunday in Algeria to discuss how to allocate supply increases to offset the loss of Iranian barrels.
• The other major factor is the loss of Iranian oil to the market as refiners are cutting or halting purchase ahead of U.S. sanctions in November is also raising concerns about supply.

 $1 = Rs. 72.48
 Import Custom Ex. Rate USD/ INR: 73.65
 Export Custom Ex. Rate USD/ INR: 71.95