Vinyl Acetate Monomer Weekly Report 05 May 2018

Weekly Price Trend: 30-04-2018 to 04-05-2018

• The graph above focuses on the Vinyl Acetate Monomer price trend for the current week.
• There has been rise in domestic values for VAM Prices increased by Rs.15/Kg in one week. This is one if the major high in last few months in domestic market. The local demand has compelled the prices to go on high range.
• By end of the week prices were assessed around Rs.107/Kg for Kandla port and Mumbai port.

Booking Scenario

The above chart shows the international prices for Vinyl Acetate Monomer. International prices of VAM increased heavily again for this week. VAM with zero duty was available at USD 1300/MT in for traders.

INDIA & INTERNATIONAL

• VAM prices were assessed at the level of Rs.107/Kg at Kandla and Mumbai port bulk quantity. There has been significant hike in domestic market.
• On other side prices in international market remained stable as prices increased in last week itself. The domestic market is facing the impact of unprecedented hike in last week in international market.
• Prices were assessed in the range of USD 1290-1310/MTS, with no change in compare to last week’s closing values.
• There has been significant hike in VAM prices in Asian market. One of the leading manufacturers of VAM, Celanese has increased its Ex China values by USD 100/MTS this week. The Reason specified for this hike is high cost of Acetic Acid and Ethylene which are its feedstocks.
• End users and traders do believe that this hike is unbearable for India buyers because many consumers will restrict their consumption for May as slowdown in demand is expected in the month of June and July due to monsoon showers. Moreover the feedstock values are not so high as specified by the company so its is difficult to digest these values.
• This week crude oil prices have fluctuated. On Thursday, prices boosted by OPEC production cuts and the potential for new U.S. sanctions against Iran, but gains were limited by growing U.S. crude inventories.
• On Thursday, closing crude values have increased. WTI on NYME closed at $68.43/bbl; prices have increased by $0.50/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.26/bbl in compared to last trading and was assessed around $73.62/bbl.
• As per report, U.S. oil production also rose to a record of 10.62 million barrels per day (bpd), a jump of more than a quarter since mid-2016. Looming over markets is the May 12 deadline by when President Donald Trump is due to decide whether or not to continue waiving U.S. sanctions against Iran.

$1 = Rs. 66.86
Import Custom Ex. Rate USD/ INR: 67.50
Export Custom Ex. Rate USD/ INR: 65.80