Weekly Acetic Acid Report 4th December 2020

Weekly Price Trend: 30-11-2020 to 04-12-2020

• There has been significant rise in domestic prices for Acetic Acid. The rise has been experienced in almost all the petrochemicals for this week.
• By end of this week prices were assessed at the level of Rs.48/Kg, for both the ports. There has been rise in values by more than 20% in last one week. Prices have been increased by Rs.9/Kg for this week for both the ports.

Booking Scenario

INDIA & INTERNATIONAL

• Domestic prices of Acetic acid were assessed at the level of Rs.48/Kg for this week.
• Domestic prices have been increasing this week. The rise in Methanol prices has boosted the prices for Acetic Acid market as well.
• CIF India prices were assessed in the range of USD 540-560/MT for this week. Prices has increased by USD 40/MT for this week.
• There has been conclusive rise in demand for Acetic Acid in Indian market. The major factor causing the rise in prices is higher feedstock prices coupled with supply-demand fundamentals.
• India has been importing huge chunk of Acetic /acid from China. But due to pandemic there has been slowdown in imports from China. Moreover, the demand for Acetic Acid is highest in the period of Sept-Nov across Asian countries.
• Oil price rallied on positive term on Friday closing as OPEC+ agrees to partial increases in production beginning in January, preventing a breakdown in the agreement.
• According to market experts, anticipation of vaccine in near future has led to recovery in global fuel demand and further this deal will go a long way to ensure the price of oil remains supported until it can stand on its own feet without support. Brent is likely to print $50/b sooner rather than later with already strong Asian demand eventually being joined by others once the Covid-19 cloud lift.
• WTI was assessed at the level of $ 45.64/bbl increased by 0.36/bbl whereas Brent was increased by 0.46/bbl and were assessed at the level of $48.71/bbl.

Acetic Acid shutdown by Byaco

• China based Byaco has shutdown its Acetic Acid unit for maintenance turnaround. The unit is based at Nanjing province of China and has the production capacity of 5,00,000 tonnes/year.

1$: Rs. 73.80

Import Custom Ex. Rate USD/ INR: 74.70

Export Custom Ex. Rate USD/ INR: 73.00