N Hexane Weekly Report 10 June 2017

Weekly Price Trend: 05-06-2017 to 09-06-2017

• The above given graph focuses on the N Hexane price trend for the current week.
• Prices were assessed at the level of Rs.47/Kg in this week, reduced by Rs.1/Kg in prices for bulk quantity.
• By end of the week prices were assessed around Rs.47/Kg for bulk quantity.

Booking Scenario

INDIA& INTERNATIONAL

• This week N hexane prices slightly reduced in domestic market. Prices were assessed around Rs.47/Kg for bulk quantity.
• Prices in international market remained unchanged for this week. CIF India prices of N Hexane were assessed at the level of USD 650-670/MTS, with no change in compare to last week’s assessed values.
• This week oil prices remained highly volatile. With a firm decision taken last week by OPEC, Russia and other producers to extend their agreement to curb output by 1.8 million barrels a day for another nine months, in order to rebalance the oil market, the bearish tone in the oil sector resurfaced.
• According to reports, U.S. oil supplies dropped by 6.4 million barrels last week, a positive for the market and a much bigger decline than expected. 
• On Thursday U.S. crude up slightly after a larger-than-expected domestic inventory drawdown.
• Closing crude values on Thursdayincreased.WTI on NYME closed at $48.36/bbl, prices have increased by $0.04/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.02/bbl in compared to last trading and was assessed around $50.33/bbl.
• As per market report, U.S. production increased, and the expectation is that ongoing activity in U.S. shale will continue to boost output, offsetting OPEC efforts.
• The Indian market is also gearing up itself for the new tax law GST. The Indian government is in full mood to implement this GST from 1 July amid all confusion and disoriented market sentiments. Market participants are all in confused state as nothing has been clearly stated and clarified. As per last announcement by the government an 18% GST rate will apply to chemicals and polymers.
• As Indian government defines “GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer… It will ensure that indirect tax rates and structures are common across the country, thereby increasing certainty and ease of doing business,”.

• This week crude oil prices followed volatile trend with sluggishness trend in pricing of crude oil. On Thursday oil prices fell due to an unexpected surge in U.S. inventories from signs of rising output in Libya and Nigeria to the crude market, as two OPEC members exempt from production cuts.
• WTI on NYME closed at $45.64/bbl, prices have decreased by $0.08/bbl in compared to last closing prices.
• While Brent on Inter Continental Exchange decreased by $0.20/bbl in compared to last trading and was assessed around $47.86/bbl. On Friday oil prices stabilized due to steep falls earlier this week, but still pressured by evidence of an ongoing fuel glut despite efforts led by OPEC to tighten the market by holding back production.
• Asian markets are also oversupplied, with traders continuing to put excess crude into floating storage, a key indicator for a glut.
• Market analyst have said that oil market is anticipated to be bullish for the second half of this year, based on supply and demand balances and the rebalancing is also going to start in the second half. But if Nigerian and Libyan production is picking up well as they are now, then slowly things will be different.

$1 = Rs. 64.24
Import Custom Ex. Rate USD/INR: Rs. 65.35
Export Custom Ex. Rate USD/INR: Rs. 63.70