Vinyl Acetate Monomer Weekly Report 02 Sep 2017

Weekly Price Trend: 28-08-2017 to 01-09-2017

• The graph above focuses on the Vinyl Acetate Monomer price trend for the current week.
• VAM prices remained volatile for most of the week.
• By end of the week prices were assessed around Rs.62/Kg for Kandla port and Rs.64/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.62/Kg at Kandla and Rs.64/Kg for Mumbai port for bulk quantity.
• On other side, CFR India values increased heavily 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 890-910/MTS, with an increase of USD 30/MTS in compare to last week’s closing values.
• This week has been full of pains and agony due to natural calamities. On one side Texas has been facing the worst floods in the history of US. Houston and Louisiana has been the largely evacuated as floods has reached everywhere.
• The major petrochemical plants of the country are located on these sites. To take a precautionary action major companies like Exxon Mobil, LyondellBasel, Celanese and many more has shut down their units abruptly.  Formosa has shut down its ports and units along with Dow chemical. Petrobras has shut down its Pasadena refinery. Shell has shut down its refinery and unit. Arkema reported explosion in its unit on Thursday.
• Global petrochemical manufacturer Celanese Corporations has declared force majeure on its VAM unit. This step has been taken as the situation has become grim due to hurricane Harvey. Many other major petrochemical manufacturers has declared either force majeure or has shut down their units keeping in mind the safety and to avoid any major disaster.
• DOW Flared has shut down its VAM unit.
• LyondellBasell declared force majeure on acetic acid and vinyl acetate monomer (VAM) after issues at La Porte, Texas.
• In India too, the heavy rainfall continue to maintain its fury. This time it was Gujarat and Maharashtra facing heavy rainfall and flood like situation. The major commercial city of India Mumbai has been hard hitten by heavy rainfall India. Mumbai was all over in water for 2 days paralyzing the city and its residents. All the transportation and city centers were closed due to heavy rainfall across the city.
• The international prices are likely to soar up as due to abrupt shut downs there will be limited supply of the chemicals across the international market.
• The major companies have not decided yet to when to resume their production. At first they are likely to check out to what extent there has been damage in their units and refineries.

$1 = Rs. 64.02
Import Custom Ex. Rate USD/ INR: 65.15
Export Custom Ex. Rate USD/ INR: 63.45