Vinyl Acetate Monomer Weekly Report 14 April 2018

Weekly Price Trend: 09-04-2018 to 13-04-2018

• The graph above focuses on the Vinyl Acetate Monomer price trend for the current week.
• There has been rise in domestic values for VAM. The local demand has compelled the prices to go on high range.
• By end of the week prices were assessed around Rs.88/Kg for Kandla port and Rs.90/Kg 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 1200/MT in for traders.
INDIA & INTERNATIONAL

• VAM prices were assessed at the level of Rs.88/Kg at Kandla and Rs.90/Kg for Mumbai port bulk quantity. There has been significant hike in domestic market.
• On other side prices reduced in international market. Prices were assessed in the range of USD 1190-1210/MTS, reduced by USD 50/MTS 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.
• On other hand VAM is also imported from Thailand, the markets are closed due to new year festival over there. Supply will start from there next week.
• End users and traders do believe that this hike is unbearable for Inida 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.
• Oil prices have escalated through the week but on Thursday prices have remained mixed.
• On Thursday, closing crude values have mixed. WTI on NYME closed at $67.07/bbl; prices have increased by $0.25/bbl in compared to last closing prices. While Brent on Inter Continental Exchange decreased by $0.40/bbl in compared to last trading and was assessed around $72.02/bbl.
• Oil markets remained tense on Thursday on concerns over a military escalation in Syria, although prices were some way off Wednesday's late-2014 highs as bulging U.S. supplies weighed. A trade dispute between the United States and China also kept markets on edge.
• Crude oil prices settled at three-year highs amid ongoing expectations that geopolitical tensions in the Middle East could add a possible ‘fear premium’ to oil, while continued OPEC cuts supported sentiment.
• If the U.S. does indeed launch missiles at Syria, this would heighten risk and likely at once push crude oil higher and depress equities further.

$1 = Rs. 65.20
Import Custom Ex. Rate USD/ INR: 65.90
Export Custom Ex. Rate USD/ INR: 64.20