Vinyl Acetate Monomer Weekly Report 18 June 2018

Weekly Price Trend: 13-08-2018 to 17-08-2018

• The graph above focuses on the Vinyl Acetate Monomer price trend for the current week.
• Prices have improved significantly in domestic market on back of improved supply coupled with significant hike in the prices of Acetic Acid.
• By end of the week prices were assessed around Rs.93/Kg for Mumbai port and for Kandla 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 1220/MT in for traders.

INDIA & INTERNATIONAL

• VAM prices were assessed at the level of Rs.93/Kg at Kandla and for Mumbai port bulk quantity.
• There has been significant hike in Acetic Acid values in international market. This in turn has led to upward trend in the prices for VAM. CFR India values were assessed around USD 1220/MT for this week.
• The other major reason for increase in international as well as domestic market is that there has been significant decline in Indian currency on Monday. The rupee crossed the mark of Rs.70 against US currency. The ongoing low in global currencies following fears that Turkish economic crisis could engulf world economy. Experts believe that rupee was mainly impacted by a fall in Turkish Lira. Further the RBI intervention helped to recover from heavy losses and pushed the rupee to close at all time low level of 69.91. All the payments in petrochemical industry are done in dollar so this will have an adverse impact on prices of petrochemical products.
• This week crude oil prices have followed volatile trend. On Friday Crude prices edged higher, but were heading for yet another weekly decline on worries that oversupply would weigh on the U.S. market and that trade disputes and slowing global economic growth would slow demand for oil.
• On Friday, closing crude values have increased. WTI on NYME closed at $65.91/bbl. Prices have increased by $0.45/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.40/bbl in compare to last closing price and was assessed around $71.43/bbl.
• As per analysts, despite the bearish factors, prices were prevented from falling further because of U.S. sanctions against Iran, which target the financial sector from August and will include petroleum exports from November.

$1 = Rs. 70.15
Import Custom Ex. Rate USD/ INR: 71.10
Export Custom Ex. Rate USD/ INR: 69.40