Vinyl Acetate Monomer Weekly Report 10 June 2017

Weekly Price Trend: 05-06-2017 to 09-06-2017

• The graph above focuses on the Vinyl Acetate Monomer price trend for the current week.
• VAM prices followed a mixed trend throughout 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.73/Kg for Kandla port and Rs.72/Kg for Mumbai port.

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.73/Kg at Kandla and Rs.72/Kg with an heavy decrease in domestic prices.
• On other side, CFR India values declined for this week. Prices were assessed in the range of USD 860-880/MTS, with an decrease of USD 40/MTS in compare to last week’s closing values.
• Saudi International Petrochemical Company has announced the periodic maintenance for its Vinyl Acetate Monomer unit of the International Vinyl Acetate Company (IVC). The plant was shut down on 30th May and is likely to remain off-stream for around three weeks. During this maintenance all the efforts would be made to increase the efficiency and reliability. The necessary precautions have been taken to ensure that commitments to customers are met without interruption during this period. Sipchem shall make further announcements in relation to the scheduled Turnaround maintenance as appropriate.
• The Indian market is also gearing up itself for the new tax law GST. The Indian government is in full mood to implement this GST from 1 July amid all confusion and disoriented market sentiments. Market participants are all in confused state as nothing has been clearly stated and clarified. As per last announcement by the government an 18% GST rate will apply to chemicals and polymers.
• As Indian government defines “GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer… It will ensure that indirect tax rates and structures are common across the country, thereby increasing certainty and ease of doing business,”.
• This week crude oil prices followed volatile trend with sluggishness trend in pricing of crude oil. On Thursday oil prices fell due to an unexpected surge in U.S. inventories from signs of rising output in Libya and Nigeria to the crude market, as two OPEC members exempt from production cuts.
• WTI on NYME closed at $45.64/bbl, prices have decreased by $0.08/bbl in compared to last closing prices.
• While Brent on Inter Continental Exchange decreased by $0.20/bbl in compared to last trading and was assessed around $47.86/bbl. On Friday oil prices stabilized due to steep falls earlier this week, but still pressured by evidence of an ongoing fuel glut despite efforts led by OPEC to tighten the market by holding back production.
• Asian markets are also oversupplied, with traders continuing to put excess crude into floating storage, a key indicator for a glut.
• Market analyst have said that oil market is anticipated to be bullish for the second half of this year, based on supply and demand balances and the rebalancing is also going to start in the second half. But if Nigerian and Libyan production is picking up well as they are now, then slowly things will be different.

$1 = Rs. 64.24
Import Custom Ex. Rate USD/ INR: 65.35
Export Custom Ex. Rate USD/ INR: 63.70