Vinyl Acetate Monomer Weekly Report 28 July 2018

                Weekly Price Trend: 23-07-2018 to 27-07-2018

• The graph above focuses on the Vinyl Acetate Monomer price trend for the current week.
• Prices have reduced heavily 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.92/Kg for Mumbai port and Rs.93/Kg 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 1200/MT in for traders.

INDIA & INTERNATIONAL

• VAM prices were assessed at the level of Rs.92/Kg at Kandla and Rs. 93/Kg for Mumbai port bulk quantity.
• There has been significant slowdown in Acetic Acid values in international market. This in turn has led to decline in the prices for VAM. CFR India values were assessed around USD 1220/MT for this week.
• Prices in Indian market are likely to remain weak as there are heavy rains in Mumbai and western part of India. There is a huge impact of monsoon season on the demand for majority of petchem products.
• DOW Chemical has lifted force majeure on its unit based at North America but it continues in other regions. The force majeure will continue for VAM in the Latin America, Europe/Middle East/Africa/India and Asia Pacific regions.
• Last week BP lifted its force majeure on its Acetic Acid unit which is the feedstock for VAM. The force majeure will continue for VAM in the Latin America, Europe/Middle East/Africa/India and Asia Pacific regions.
• Crude prices have been on increasing trend for this week.  On Wednesday US government released the dats regarding the low inventory levels of crude. The inventory levels have reduced at max since 2015. With low inventory the worries about oversupply has now reduced which has affected the market in last few weeks.
• Oil prices rose on Thursday as Saudi Arabia suspended its shipments through strait in the Red Sea following an attack on two oil tankers by Yemen.
• Brent futures rose 61 cents to settle at $74.54 a barrel, a 0.8 percent gain. The contract earlier touched $74.83 a barrel, highest since July 16. U.S. West Texas Intermediate (WTI) crude futures were up 31 cents, settling at $69.61, a 0.5 percent gain.

$1 = Rs. 68.65
Import Custom Ex. Rate USD/ INR: 69.60
Export Custom Ex. Rate USD/ INR: 67.90