Vinyl Acetate Monomer Weekly Report 27 Oct 2018

Weekly Price Trend: 22-10-2018 to 26-10-2018

• The graph above focuses on the Vinyl Acetate Monomer price trend for the current week.
• This week there has been weakness in domestic values. Impact of fluctuation in crude values has also manipulated the domestic prices for VAM.
• By end of the week prices were assessed around Rs.83/Kg for Mumbai port Rs. 84/Kg for Kandla port.

Booking Scenario

The above chart shows the international prices for Vinyl Acetate Monomer. International prices of VAM have increased significantly for this week.

INDIA & INTERNATIONAL

• VAM prices were assessed at the level of Rs.83/Kg at Kandla and Rs.84/Kg for Mumbai port bulk quantity.
• With rise in the prices for Acetic Acid in international market, prices have also declined for this week.
• VAM is one of the key ingredients for adhesive companies such as Pidlite Industries. With rise in cost of crude derivatives the margins for the key industries using these as raw material are under immense pressure.
• VAM demand has seen an improvement in domestic market on back of festive season across India as many households and commercial sector opts for repainting and renovation of their units.
• Oil prices reduced on Friday and were heading for a third weekly loss, pulled down as Saudi Arabia's OPEC governor said the market may become oversupplied soon and after a slump in global equities clouded the outlook for demand.
• "Bearish sentiment could force a re-test of support in the low $70.0 per barrel range.
• The market may shift towards an oversupply situation as evidenced by rising inventories over the past few weeks.
• U.S. crude oil stockpiles rose last week for the fifth consecutive week, while gasoline and distillate inventories fell, the Energy Information Administration said this week.
• Financial markets have been hit hard by a range of worries, including the U.S.-China trade war, a rout in emerging market currencies, rising borrowing costs and bond yields, and economic concerns in Italy.
• Washington is putting pressure on governments around the world to stop importing oil from Iran.
• Most, including its biggest customer China, are falling in line, and Iran has turned to storing its unsold oil on its tanker fleet in the hope that it can sell the crude off quickly once the sanctions are lifted again.

$1 = Rs. 73.46
Import Custom Ex. Rate USD/ INR: 74.30
Export Custom Ex. Rate USD/ INR: 72.60