Vinyl Acetate Monomer Weekly Report 20 Oct 2018

Weekly Price Trend: 15-10-2018 to 19-10-2018

• The graph above focuses on the Vinyl Acetate Monomer price trend for the current week.
• This week there has been firmness in domestic values. Impact of fluctuation in crude values has also manipulated the domestic prices for VAM.
• By end of the week prices were assessed around Rs.86/Kg for Mumbai port Rs. 85/Kg for Kandla port.

Booking Scenario

The above chart shows the international prices for Vinyl Acetate Monomer. International prices of VAM have increased significantly for this week.

INDIA & INTERNATIONAL

• VAM prices were assessed at the level of Rs.85/Kg at Kandla and Rs.86/Kg for Mumbai port bulk quantity.
• With rise in the prices for Acetic Acid in international market, prices for VAM have remained unchanged and stable throughout his week.
• VAM is one of the key ingredients for adhesive companies such as Pidlite Industries. With rise in cost of crude derivatives the margins for the key industries using these as raw material are under immense pressure.
• VAM demand has seen an improvement in domestic market on back of festive season across India as many households and commercial sector opts for repainting and renovation of their units.

• There has been significant decline in crude prices in last two weeks. Prices plunged by more than 11 % in last two weeks. Oil prices rose to nearly four-year highs at the start of October as there has been depletion in crude supply sue to US sanctions on Iran.
•  Rising U.S. crude stockpiles, forecasts for slower-than-expected demand growth and a sell-off in stock markets have weighed on crude futures.
• The supply of oil held in U.S. storage tanks has risen sharply over the last four weeks. U.S. crude stockpiles are up by 22.3 million barrels through last week. That's the biggest increase over that four-week period since 2015, when storage levels were rising toward all-time highs in a heavily oversupplied market.
• The market remains uncertain about the ability of producers such as Saudi Arabia and Russia to fill the gap left by the loss of roughly 1 million barrels a day of Iranian exports. Analysts say the market is deeply cynical that Riyadh would cut output and push oil prices higher to settle a political score.

$1 = Rs. 73.32
Import Custom Ex. Rate USD/ INR: 74.30
Export Custom Ex. Rate USD/ INR: 72.60