Vinyl Acetate Monomer Weekly Report 01 July 2017

Weekly Price Trend: 26-06-2017 to 30-06-2017

• The graph above focuses on the Vinyl Acetate Monomer price trend for the current week.
• VAM prices has reduced heavily for this week. In compare to other petrochemicals there has been slowdown in domestic values for VAM throughout this week.
• By end of the week prices were assessed around Rs.68/Kg for Kandla port and Rs.67/Kg for Mumbai port.

Booking Scenario

The above chart shows the international prices for Vinyl Acetate Monomer. International prices of VAM decreased slightly for this week in compare to last Friday’s assessed level.

INDIA & INTERNATIONAL

• VAM prices were assessed at the level of Rs.68/Kg at Kandla and Rs.67/Kg for Mumbai port for bulk quantity.
• On other side, CFR India values increased slightly for this week. Prices were assessed in the range of USD 860-880/MTS, increased by USD 10/MTS in compare to last week’s closing values.
• Dairen Chemical Corp is planning to shut its VAM unit for maintenance turnaround. The unit is likely to go off-stream in the month of July 2017. It is expected to remain off-stream for around two weeks but the date for restart of unit is uncertain.
• Unit is based at Jurong island in Singapore and has the production capacity of 3,50,000 mt/year.
• Crude oil prices have followed positive inclination as the fall in U.S. production has bolstered markets this week.
• On Thursday, closing crude values have increased.WTI on NYME closed at $44.93/bbl, prices have increased by $0.19bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.11/bbl in compared to last trading and was assessed around $47.42/bbl.
• After the steep drop in oil prices of recent weeks, market players said that especially hedge funds saw nice buying momentum and lower U.S. crude production was the trigger to act.
• U.S. crude output dropped 100,000 barrels per day (bpd) to 9.3 million bpd last week, the steepest weekly fall since July 2016.
• As per market players recently market is cyclically bullish within a structurally bearish framework, noting that global inventories were drawing, demand is high, OPEC could still make deeper cuts and U.S. producers could be discouraged by rising costs.
• OPEC delegates have indicated they will not rush to implement further cuts to crude output. However, pressure from investors amid a relentless global supply overhang could prompt the group to consider further steps to support the market at its upcoming meeting in Russia next month.

$1 = Rs. 64.58
Import Custom Ex. Rate USD/ INR: 65.15
Export Custom Ex. Rate USD/ INR: 63.50