MEG Weekly Report 10 June 2017

Weekly Price Trend: 05-06-2017 to 09-06-2017

• The above given graph focuses on the MEG price trend from 5th June to 9th June 2017.  
• Prices decreased heavily for this week. Domestic prices were assessed at the level of Rs.58/Kg for bulk quantity with an decrease of Rs 3/Kg in compare to last week’s closing values.

Booking Scenario

The above chart shows the international prices of MEG and its comparison from the previous prices.
INDIA & INTERNATIONALs

• This week domestic prices reduced heavily for this week. Prices were assessed at the level of Rs.58/Kg for bulk quantity.
• CFR India prices were assessed in the range of USD 600-620/MTS. Prices increased heavily for this week.
• CFR China values increased by USD 10/MTS in compare to last week’s assessed values and were assessed in the range of USD 760-780/MT
• CFR SEA prices for MEG were assessed around USD 775/MT for this week. FOB Korea values for Ethylene was assessed around USD 925/MTS while CFR China values for Ethylene were assessed around USD 960/MTS.
• FOB Korea values for Propylene was assessed around USD 820/MTS while CFR China values were assessed around USD 845/MTS.
• The Indian market is also gearing up itself for the new tax law GST. The Indian government is in full mood to implement this GST from 1 July amid all confusion and disoriented market sentiments. Market participants are all in confused state as nothing has been clearly stated and clarified. As per last announcement by the government an 18% GST rate will apply to chemicals and polymers.
• As Indian government defines “GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer… It will ensure that indirect tax rates and structures are common across the country, thereby increasing certainty and ease of doing business,”.
• This week crude oil prices followed volatile trend with sluggishness trend in pricing of crude oil. On Thursday oil prices fell due to an unexpected surge in U.S. inventories from signs of rising output in Libya and Nigeria to the crude market, as two OPEC members exempt from production cuts.
• WTI on NYME closed at $45.64/bbl, prices have decreased by $0.08/bbl in compared to last closing prices.
• While Brent on Inter Continental Exchange decreased by $0.20/bbl in compared to last trading and was assessed around $47.86/bbl. On Friday oil prices stabilized due to steep falls earlier this week, but still pressured by evidence of an ongoing fuel glut despite efforts led by OPEC to tighten the market by holding back production.
• Asian markets are also oversupplied, with traders continuing to put excess crude into floating storage, a key indicator for a glut.
• Market analyst have said that oil market is anticipated to be bullish for the second half of this year, based on supply and demand balances and the rebalancing is also going to start in the second half. But if Nigerian and Libyan production is picking up well as they are now, then slowly things will be different.

$1 = Rs. 64.24
Import Custom Ex. Rate USD/ INR: 65.35
Export Custom Ex. Rate USD/ INR: 63.70