Phenol Weekly Report 21 Dec 2018

Weekly Price Trend: 17-12-2018 to 21-12-2018

• 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 prices declined further in market prices have decreased sharply and at the end of the week prices were assessed at the level of Rs. 82/Kg for bulk quantity. 

Booking Scenario

INDIA & INTERNATIONAL

• This week domestic phenol market prices were assessed around Rs.82/Kg for bulk quantity. Prices have decreased sharply.
• CFR India prices for this week were assessed in the range of USD 1270-1290/MTS, prices have decreased by USD 30/MT in compared to last assessed values.
• In the month of October prices were assessed in the range Rs150/Kg which has now declined to the level of Ra.82/Kg in domestic market.
• The steep fall in the crude values in international market has let for strong decline in the Benzene and Phenol prices.
• Benzene FOB Korea prices declined by USD 42/MT in this week. FOB Korea values were assessed around USD558/MT. On other side CFR China prices were assessed around USD 586/MT for this week.  This strong decline in Benzene values has paved way for decline in other related products.
• The upcoming holiday season in China has weakened the demand further as most of the Acetate units opts for shutdown during this period.
• Crude market has been operating at lower levels since past few weeks. The prices tumbled by around 4.8% and has reduced to the levels of USD 45.88/bbl. This has reached to its lowest levels in last seventeen months. The oversupply has been the prime reason for this downfall.
• Demand for oil has reduced this year on contrary the market has been flooded with oversupply from world’s top three producers- the USA, Russia and Saudi Arabia.
• Last month earlier OPEC and other 10 producers agreed to cut down their production to remove 1.2 mln barrels per day from the market. But this step has least impact on the market. This cut down in production will last only till January 2019, further no decision has been taken yet.
• On Thursday, closing crude values have decreased. WTI on NYME closed at $45.88/bbl. Prices have decreased by $2.29/bbl in compared to last closing prices. While Brent on Inter Continental Exchange decreased by $2.89/bbl in compare to last closing price and was assessed around $54.35/bbl. 

PLANT NEWS

• Cepsa chemical has restarted its Phenol/Acetone unit after a very short maintenance schedule. Earlier the unit was shut down in the starting of December for a very short duration and resumes its production by end of the week.
• Unit is based at Shanghai in China and has the production capacity of Phenol around
• 2, 50,000 tonnes/year and Acetone around 1, 50,000 tonnes/year 

 $1 = Rs. 70.14

 Import Custom Ex. Rate USD/ INR: 71.75

 Export Custom Ex. Rate USD/ INR: 70.05