VAM Weekly Report 23 Sep 2017

Weekly Price Trend: 18-09-2017 to 22-09-2017

• The graph above focuses on the Vinyl Acetate Monomer price trend for the current week.
• There has been heavy rise in domestic values for VAM. This has been particularly due to limited supply of the chemical in South Asia.
• By end of the week prices were assessed around Rs.92.5/Kg for Kandla port and Rs.91.5/Kg for Mumbai port.

Total import at various ports in the month of August 2017

The above chart depicts the import of VAM at various ports of India in the month of August 2017.

Booking Scenario

The above chart shows the international prices for Vinyl Acetate Monomer. International prices of VAM increased heavily for this week in compare to last Friday’s assessed level.
INDIA & INTERNATIONAL

• VAM prices were assessed at the level of Rs.92.5/Kg at Kandla and Rs.91.5/Kg for Mumbai port for bulk quantity. The heavy increase has been due to limited supply of the chemical in the international market coupled with striking demand in domestic market.
• On other side, CFR India values increased by USD 40/MTS on back of shut down of major VAM plants in US. The impact has been quite firm. Prices were assessed in the range of USD 1180-1200/MTS, with an increase of USD 40/MTS in compare to last week’s closing values.
• Texas based Methanol unit has been restarted this week. Earlier this unit was shut down due to heavy rains and hurricane Harvey. The authorities from Celanese has confirmed this news and restarted its unit at Clear Lake city in Texas. Due to this shut down the prices for Methanol has been soaring in the US market. The other downstream products like Acetic Acid and VAM units too suffered a lot on the same site. This methanol unit has the production capacity of 1.3 million mt/year.
• This week there has been significant hike in crude values. Prices has reached too its highest level since April in this year. Crude values rose above $ 50/barrel for the first time. Both the contracts have increased by more than 19% since /June.
• This week oil prices followed mixed trend. Oil prices were steady on Thursday ahead of a meeting of oil producers that could extend production limits aimed at clearing a glut that has depressed the market for more than three years. As per report, Ministers from the OPEC, Russia and other producers meet in Vienna on Friday and are due to consider extending output cuts that began in January.
• On Thursday, closing crude values have mixed.WTI on NYME closed at $50.55/bbl, prices have decreased by $0.14/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.14/bbl in compared to last trading and was assessed around $56.43/bbl. Presently many analysts anticipate that OPEC to extend the deal, possibly to the end of next year.

$1 = Rs. 64.79
Import Custom Ex. Rate USD/ INR: 65.70
Export Custom Ex. Rate USD/ INR: 63.70