Weekly Acetic Acid Report 15th January 2021

Weekly Price Trend: 11-01-2021 to 15-01-2021

• There has been continuous variability in domestic prices in Acetic Acid market this week.
• By end of this week prices were assessed at the level of Rs.47/Kg, for both the ports.
• There has been no major change in Acetic Ad market for this week.

Booking Scenario

INDIA & INTERNATIONAL

• Domestic prices of Acetic acid were assessed at the level of Rs.47-48/Kg for this week.
• There has been no major change in Acetic Acid value for this week. Prices remained stable for most of the week with no major change in prices.
• The local demand for Acetic Acid has also settled down and prices are heading towards their original level in domestic market.
• CIF India prices were assessed in the range of USD 540-560/MT for this week. Prices has increased by USD 30/MT for this week.         
• Strong moves have been observed in the key crude oil benchmarks-WTI, and Brent, in the last several months. This was initiated by the advent of positive news on the Covid front that the vaccines in development were extremely efficacious, promising an endpoint to the spread of the virus.
• Many countries have imposed fresh lockdown amid scare of new corona strain. Inspite of these issues the demand trend is likely to remain positive. As implementation of vaccine has increased, experts believe that business activity will resume creating demand for petroleum products.
• Oil exploration and production companies like Oil and Natural Gas Corporation (ONGC) and Oil India (OIL) are not expecting this price recovery to be the last moment shot-in-the-arm to salvage the difficult 2020-2021.
• There are also some sceptics of this oil price rally driven by Saudi Arabia’s production cuts. If US President-elect Joe Biden’s administration goes soft on Iran and lifts sanctions, the oil market will be oversupplied and prices may not recover. There is a lot of geopolitical turmoil that is going to steer the oil market in 2021.

       1$: Rs. 73.07

Import Custom Ex. Rate USD/ INR: 74.00

Export Custom Ex. Rate USD/ INR: 72.30