Vinyl Acetate Monomer Weekly Report 2 June 2018

Weekly Price Trend: 28-05-2018 to 01-06-2018

• The graph above focuses on the Vinyl Acetate Monomer price trend for the current week.
• Prices have reduced to significant level in domestic market on back of improved supply coupled with slight stable in the prices of Acetic Acid.
• By end of the week prices were assessed around Rs.109/Kg for Kandla port and for 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 1350/MT in for traders.
INDIA & INTERNATIONAL

• VAM prices were assessed at the level of Rs.109/Kg at Kandla and Mumbai port bulk quantity.
• With improvement supply in of chemical, domestic prices has now become more stable and viable.
• Earlier the constant delay in the shipments from Singapore and Taiwan since April has led to shortage of the chemical. The manufacturers are unable to fulfill their commitments as there is constant shortage of feedstock Acetic Acid. Now the major suppliers are first catering to their domestic market in Asian subcontinent. So many believe to import it from American market.
• To add to their woes, one of the major manufacturers of VAM, DOW chemical declared force majeure on its unit. The reason behind this has been the external factors related to supply of material and production issues. The force majeure is likely to last for around two months. The market experts believe that this force majeure is due to BP’s force majeure at a US acetic acid plant in Texas in late April. This has led to acute supply and huge demand in American market.
• This week oil prices followed a mixed trend. On Thursday U.S. crude prices sank after a brief rally in the previous session, but as per analysis the recent slump in oil prices won't last much longer.
• On Thursday, closing crude values have remained mixed. WTI on NYME closed at $67.04/bbl; prices have decreased by $1.17/bbl in compared to last closing prices. While Brent on Inter
• Continental Exchange increased by $0.09/bbl in compared to last trading and was assessed around $77.59/bbl.
• Oil prices were already heading lower on recent reports that OPEC, Russia and several other producer nations could soon begin winding down their 17-month-old deal to cap output. That agreement has drained a global glut of oil and helped balance the market, but it's now under review due to falling Venezuelan output and renewed U.S. sanctions against Iran.
• Market players said that supply and demand in the oil market are finely balanced, and surging U.S. output might not be enough to offset supply disruptions in Venezuela and Iran. Oil market fundamentals and OPEC policy could support oil at around $70 a barrel or higher.

$1 = Rs. 67.07
Import Custom Ex. Rate USD/ INR: 68.65
Export Custom Ex. Rate USD/ INR: 66.95