Vinyl Acetate Monomer Weekly Report 08 July 2017

Weekly Price Trend: 03-07-2017 to 07-07-2017

• The graph above focuses on the Vinyl Acetate Monomer price trend for the current week.
• VAM prices have remained unchanged for this week. In compare to other petrochemicals there has been stability in domestic values for VAM throughout this week.
• By end of the week prices were assessed around Rs.67/Kg for Kandla port and Rs.68/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.67/Kg at Kandla and Rs.68/Kg for Mumbai port for bulk quantity.
• On other side, CFR India values reduced heavily for this week. Prices were assessed in the range of USD 825-845/MTS, reduced by USD 35/MTS in compare to last week’s closing values.
• The global market for VAM is likely to witness growth of 4-4.5% in next five years according to Marketbiz.com. Vinyl acetate monomer (VAM) is a crucial intermediate utilize in the production process of numerous polymers as well as resins for adhesives, coatings, films, textiles and some other end user products. It also finds application as adhesives for industrial coatings, metal, paper, paints, wood, and others. Vinyl acetate monomer finds application in the production of polyvinyl alcohol, ethylene vinyl acetate, vinyl acetate ethylene, ethylene vinyl alcohol and other products. Poly vinyl acetate and poly vinyl alcohol accounts for most of the demand for vinyl acetate monomer.  Ethylene vinyl alcohol has high demand from industries such as packaging, polymer, and plastic bottling.
• This week oil prices followed volatile trend. On Thursday oil prices closed on slightly higher note after a sharp but short-lived boost from a much bigger-than-expected decline in U.S. inventories of crude oil and gasoline. WTI on NYME closed at $45.52/bbl, prices have increased by $0.39/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.32/bbl in compared to last trading and was assessed around $48.11/bbl. Market players said the surge was driven by traders closing out short positions, or bets that oil prices would fall.
• There's a lot of bearishness out there now the market still believes supplies are not going to be in balance globally. Investors believe the OPEC will need to make further output cuts to offset thriving shale production in the United States.
• U.S. gasoline stocks dropped 3.7 million barrels in the most recent week, far exceeding the expected drop of 1.1 million barrels. Still, gasoline inventories remain about 6 percent above seasonal averages, so investors will watch for July data to see if demand is strong enough to whittle down stocks.

$1 = Rs. 64.59
Import Custom Ex. Rate USD/ INR: 65.65
Export Custom Ex. Rate USD/ INR: 63.95