EDC Weekly Report 15 Sep 2018

Weekly Price Trend: 10-09-2018 to 14-09-2018

• The above graph focuses on the weekly price trend of EDC for the current week.
• As per the above graph, it has been inferred that this week the prices of EDC have increased in compare to previous week and at the end of this week prices were assessed at the level of Rs 27.5/kg.

Booking Scenario

INDIA & INTERNATIONAL

• This week in the domestic market, prices of EDC have increased little in compare to previous week and were assessed at Rs 27.5/kg.
• In international market, prices of EDC also have remained firm in compare to earlier week.
• Ethylene prices plunged sharply Asian market on drop in upstream crude and naphtha values due to bearish demand sentiments.
• As per report, CFR North East Asia prices were assessed at the USD 1320/mt levels, CFR South East Asia prices of ethylene were assessed at the USD 1220/mt.
• Prices have plunged by USD 50/mt and USD 25/mt respectively in compare to last assessed prices.
• FOB Korea prices of feedstock ethylene USD 1295/MT
• CFR China prices of feedstock ethylene USD 1305/MT
• CFR South East Asia prices of feedstock ethylene USD 1220/MT.
•  Oil prices crossed the levels of USD80 by mid of the week, later it fell by more than 2% on Thursday. This hike was the highest in last four months. The international Energy Agency has already warned that the oil market is tightening at the moment and world oil demand would soon reach 100 million barrels per day (bpd) in the next three months, global economic risks were mounting.
•  U.S. companies in China are being hurt by tariffs in the growing trade war between Washington and Beijing, according to a survey, prompting U.S. business lobbies to urge President Donald Trump's administration to reconsider its approach.
•  The White House has invited Chinese officials to restart trade talks just as it prepares to escalate a trade war with China with tariffs on $200 billion worth of Chinese goods.
• The other major factor is the loss of Iranian oil to the market as refiners are cutting or halting purchase ahead of U.S. sanctions in November is also raising concerns about supply. All these factor has put an rigorous pressure on petrochemical industry and has led to hike in the prices of crucial petrochemical products.

$1 = Rs. 71.84
 Import Custom Ex. Rate USD/ INR: 72.55
 Export Custom Ex. Rate USD/ INR: 70.85