Published on July 20, 2015

Crude values were marching higher in the month of June July in 2014. Since then there has been consistent lowering in values. With completion of one year in July 2015, the crude values has duped to a significant level. One of the major reason for this slashing of values has been the oversupply of crude. The superfluity of oil continue to dominate the world economics. With Iran's acceptance for the nuclear deal, another major source of crude in the world will get its fair chance to supply crude to European Union and US. Declining of crude by 44% in this span has an huge impact on aromatic compounds, olefins and solvents. Values of MEG has lowered heavily in past few months, affecting the downstream products like PTA, Polyester, Nylon and many more.

Pricing of Ethylene has lowered heavily in last few weeks. With stating of many new plants and restart of existing crackers has tumbled the Ethylene market across the globe. With weakening of Chinese macroeconomics and Greece crisis, there has been lowering of PS values in international market. The impact is visible on Indian domestic market as well. Prices has declined to significant level for PS and other related chemicals in domestic market on back of glut in supply and weakening of demand.