Phenol Weekly Report 13 Oct 2018

Weekly Price Trend: 08-10-2018 to 12-10-2018

• 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 market prices of Phenol have decreased sharply and at the end of the week prices were assessed at the level of Rs. 138/Kg for bulk quantity.

Booking Scenario

INDIA & INTERNATIONAL

• This week domestic phenol market prices were assessed around Rs.138/Kg for bulk quantity. Prices have decreased sharply.
• CFR India prices for this week were assessed in the range of USD 1530-1550/MTS, prices have increased by USD 50/MT in compared to last assessed values.
• With an unprecedented hike in last week, prices are now operating on reverse mode. This week prices reduced and reach to the level of Rs.138/Kg for bulk quantity.
• Phenol prices are completely dominated by Benzene prices which operate according to crude values. By mid of this week crude crossed the mark of $85/bbl, later it slowed down to the level of $80/bbl. This impact was clearly seen in immediate related petrochemical prices.
• INEOS Phenol is in plan to expand its phenol production capacity at its Mobile site in the US state of Alabama by 57% from 540,000 to 850,000 mt/year, turning it into the largest plant in the world. This expansion will meet anticipated growth in demand and shows a clear commitment to customers to meet their long-term needs in North America, as per report.
• FOB Korea and CFR China prices of Benzene were evaluated at USD 835/mt and USD 850/mt respectively.
• 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