Phenol Weekly Report 1 Feb 2019
Weekly Price Trend: 28-01-2019 to 01-02-2019
- The above given graph focuses on the Phenol price trend for the current week.
- If we take a quick look at the above given weekly price trend it can be observed that this week domestic prices increased heavily for this week.
- By end of the week prices were assessed at the level of Rs. 97/Kg for bulk quantity.
Booking Scenario
INDIA & INTERNATIONAL
- This week domestic phenol market prices were assessed around Rs.97/Kg for bulk quantity. Prices increased by Rs.5/Kg for this week.
- CFR India prices for this week were assessed in the range of USD 1380-1400/MTS, increased by USD 40/MTS for this week.
- Benzene FOB Korea prices remained firm for this week. FOB Korea values increased by USD 15/MT and were assessed around USD 575/MT. On other side CFR China prices were assessed around USD 600/MT for this week.
- The market has been waiting for budget 2019 which was appreciated and has been given thumbs up all the sectors.
- There has been rise in crude values with positive talks in international market. The prices rise has been in particular due to cut in the supply to the US from Saudi Arabia.
- The price rise came after a report from the U.S. Energy Information Administration (EIA) on Wednesday showed a drop in Saudi crude supply to the United States.
- Crude oil prices were stronger after signs emerged that OPEC cuts are impacting trade. EIA's weekly report showed that U.S. imports from Saudi Arabia fell by more than half from the previous week to 442,000 barrels per day (bpd).
- The trade talk between US and China in coming days with positive hopes and substantial rise in talks.
- Meanwhile US sanctions imposed on Venezuela firm with many stocks stuck at ports is likely to accelerate supply drop in oil.
- Much Venezuelan crude oil is rated as heavy and requires the light petroleum naphtha, much of it supplied from the United States, for dilution before export to refineries.
PLANT NEWS
Release of Phenol ADD probe findings has been delayed by China
- In March 2018, Chinese government initiated probe on Anti dumping duty investigation on Phenol imports from five origins which include US, EU, South Korea, Japan and Thailand. The initial probe lasts for six months but it has been delayed by one year now. “This is the longest ADD investigation in quite a while. Under normal circumstances, the final results would have been announced in one year,
- Chinese authorities may be opting to wait until after the 90-day trade war truce with the US lapses on 1 March, before taking any further action.
- Chinese buyers had lost interest in US-origin phenol following imposition of a 10% import duty in late August 2018. US was a major exporter of the material to China, from which the northeast Asian country sourced about a third of its phenol imports in 2016.
- US-origin phenol bound for China was imposed with a 10% import duty in late August last year, when the second volley of shots were fired in the trade war between the two economic giants.
$1 = Rs. 71.25
Import Custom Ex. Rate USD/ INR: 72.10
Export Custom Ex. Rate USD/ INR: 70.40
