MEG Weekly Report 16 june 2018

Weekly Price Trend: 10-06-2018 to 15-06-2018

• The above given graph focuses on the MEG price trend from 11th June to 15th June 2018.  
• Prices remained soft-to-stable for this week. Domestic prices were assessed at the level of Rs.70/Kg for bulk quantity.

Booking Scenario

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

• This week domestic prices remained soft for bulk quantity. Prices were assessed at the level of Rs.70 /Kg for bulk quantity.
• CFR China values were assessed around USD 915-935/MT, increased by USD 15/MT for this week. CFR South East Asia assessed around USD 970/MT.
• FOB Korea values for Ethylene were assessed around USD 1295/MT, while CFR China values were assessed around USD 1365/MT and CFR South East Asia values were assessed around USD 1255/MT.
• On other side Propylene market remained stable for this week. FOB Korea values were assessed around USD 1075/MT while CFR China values were assessed around USD 1100MT.
• There has been improvement in MEG prices for this week. Imports has reduced in this month AS there has been major turnarounds for MEG units in Iran, Taiwan and Japan.
• Moreover demand from Polyester industry has improved. Operating rate of end-user looms weakened, while it will take times to generate impact on polyester sector.
• Inner Mongolia ECO Coal Chemical has run through all processes and are still under commissioning. By June end, CSPC Anhui Huizhou, CNSG Hongsifang and Xinjiang Tianying Petrochemical will start their MEG units, while output increment from coal-based MEG may show in August.
• The PTA unit of Fuhaichuang Petrochemical which was earlier known as Dragon Aromatics will go on-stream in the third quarter of 2018. The unit has been under maintenance for quite a long period.
• In China, Fuhaichuang Petrochemical, formerly known as Dragon Aromatics (Zhangzhou), is planning to resume operations at its complex in the third quarter this year after a prolonged shutdown.
• The unit is based at Zhangzhu in China and has the production capacity of 4.5 m tonnes/year which is comprised of three 1.5m tonne/year lines. The company is likely to restart the third line once smooth operations at its upstream paraxylene (PX) unit at the site is achieved.
• This week market remained dull passive on back of Ramadan and continuous 4 day holidays in this weekend. This week crude oil prices have followed mixed trend. On Thursday oil prices were lower, facing pressure from evidence of rising U.S. output and uncertainty over the outlook for supply.
• On Friday, closing crude values have remained mixed. WTI on NYME closed at $66.89/bbl; prices have increased by $0.25/bbl in compared to last closing prices. While Brent on Inter
• Continental Exchange increased by $0.86/bbl in compare to last closing price and was assessed around $76.74/bbl.
• On Friday oil prices were little changed in early Asian trade, as investors eyed a key OPEC meeting in Vienna and Saudi Arabia and Russia.As per report, OPEC and Russia are expected to gradually increase production, but opinions about easing output caps are fragmented within OPEC ahead of its meeting next week. U.S. crude output hits record 10.9 million barrels per day, as per report.

$1 = Rs. 68.01
Import Custom Ex. Rate USD/ INR: 67.85
Export Custom Ex. Rate USD/ INR: 66.15