Vinyl Acetate Monomer Weekly Report 15 Sep 2018

  Weekly Price Trend: 10-09-2018 to 14-09-2018

• The graph above focuses on the Vinyl Acetate Monomer price trend for the current week.
• This week has been full of volatility in prices. Impact of fluctuation in crude values has also manipulated the domestic prices for VAM. The impact of increase in Acetic Acid prices has now reduced and prices are no ore under its influence.
• By end of the week prices were assessed around Rs.88/Kg for Mumbai port Rs. 90/Kg for Kandla port.

Booking Scenario

The above chart shows the international prices for Vinyl Acetate Monomer. International prices of VAM reduced heavily for this week. VAM with zero duty was available at USD 1100/MT in for traders.

INDIA & INTERNATIONAL

• VAM prices were assessed at the level of Rs.88/Kg at Kandla and Rs.91/Kg for Mumbai port bulk quantity.
• With correction of Acetic Acid prices, there has been correction in the values for VAM. Generally demand for VAM remained silent in the monsoon season in India. VAM is primarily used in manufacturing of paints, adhesives, and paper coatings. Now with arrival of festive season in next few weeks demand for such products will increase in domestic market.
• It is also used in packaging industry. The demand for packaged food and air tight and eco friendly packaging has increased by many folds in past few years. There has been significant slowdown in Acetic Acid values in international market. This will put an additional pressure in the demand for VAM in the packaging industry.
• There has been continuous depreciation of Indian currency against dollar. The impact is due to rise in crude values in international market. To deepen the sorrows the sanction against Iran by US further hammered the currency rate of many nations. Turkey is on the verge of failing of economy. This in turn has led to increase in petrochemical prices and crude values.
• Slowdown in China market is likely to happen in next few weeks as most of the traders are interested in selling out their existing stocks before the national holiday vacation in the first week of October.
• Oil prices crossed the levels of USD80 by mid of the week, later it fell by more than 2% on Thursday. This hike was the highest in last four months. The international Energy Agency has already warned that the oil market is tightening at the moment and world oil demand would soon reach 100 million barrels per day (bpd) in the next three months, global economic risks were mounting.
• U.S. companies in China are being hurt by tariffs in the growing trade war between Washington and Beijing, according to a survey, prompting U.S. business lobbies to urge President Donald Trump's administration to reconsider its approach.
• The White House has invited Chinese officials to restart trade talks just as it prepares to escalate a trade war with China with tariffs on $200 billion worth of Chinese goods.
• The other major factor is the loss of Iranian oil to the market as refiners are cutting or halting purchase ahead of U.S. sanctions in November is also raising concerns about supply.
• All these factor has put an rigorous pressure on petrochemical industry and has led to hike in the prices of crucial petrochemical products.

$1 = Rs. 71.84
Import Custom Ex. Rate USD/ INR: 72.55
Export Custom Ex. Rate USD/ INR: 70.85