Vinyl Acetate Monomer Weekly Report 29 Sep 2018

Weekly Price Trend: 24-09-2018 to 28-09-2018

• The graph above focuses on the Vinyl Acetate Monomer price trend for the current week.
• This week there has been slowdown 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.87/Kg for Mumbai port Rs. 86/Kg for Kandla port.

Booking Scenario

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

INDIA & INTERNATIONAL

• VAM prices were assessed at the level of Rs.86/Kg at Kandla and Rs.87/Kg for Mumbai port bulk quantity.
• With correction of Acetic Acid prices, there has been correction in the values for VAM.
• With rise in the prices for Acetic Acid in international market, prices for VAM has also increased heavily.
• CIF India prices were assessed in the range of USD 1140-1160, increased by USD 50/MT for this week.
• There has been slowdown in Asian market as China the leader of petrochemical industry in Asiatic region has pulled down itself from any fresh trading. There will be nation holidays in China next as a result traders are reluctant to make any new purchases.
• China market will remain closed for next week as the nation will be celebrating Golden week festival.
• Continuous surge in crude prices has heated the global oil market. Crude prices are likely to cross the mark of USD 100 in next few weeks.
• According to Petrochemical giant Total, the supply disruptions and the delay time associated with OPEC’s ability to increase production could pull up the price to $100 per barrel. This in turn will hamper the economy and the oil industry.
• Disruptions in supply coming from Iran, Venezuela, and Libya give strong support to oil prices and they may head into triple-digit territory. On the other hand, although OPEC has assured to boost production, but output hasn’t increased so much. Saudi Arabia has capacity of 11 million bpd, but boosting production from current levels would need time, because they have to mobilize rigs.
• US Sanctions will surely trigger a dramatic shortfall in global supply. And the sanctions are widely expected to have an immediate impact on Iran's oil exports, although estimates of exactly how much of the country's oil could disappear from November 4 vary widely.
• Some energy market analysts expect around 500,000 barrels per day (bpd) to disappear once U.S. sanctions against Iran come into force, while others have warned as much as 2 million bpd could come offline over the coming months.

$1 = Rs. 72.48
Import Custom Ex. Rate USD/ INR: 73.65
Export Custom Ex. Rate USD/ INR: 71.95