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Saudi Minister’s Comment Helps Oil Prices

During the outgoing week, crude oil prices remained bullish after the Saudi Minister said that OPEC and allied producers would need to keep coordinating supply cuts into 2019. Further, growing concerns over the future of Iranian crude exports contributed to the rally. WTI Crude closed the week at USD 65.88/bbl, showing a gain of 5.6%, Brent Crude rose by 6.4% and Arab Light by 6.3%.

International steel scrap prices and steel rebar prices declined by 2% during the outgoing week. Similarly, Hot Rolled Coil (HRC) declined by 5% WoW amid decline in Chinese market due to low demand by traders as re-rollers were waiting for the price decline before deciding whether to buy imports. To recall, a 25% tariff was imposed by U.S.

Local Urea prices remained at strong level to close the week at PKR 1,427/bag despite declining prices in the international market. Urea in Middle East declined by 4% WoW to USD 255/bag.

During the week ended on March 16, PVC-Ethylene Core Delta declined 12% WoW owing to increase in  Ethylene prices which closed the week at USD 1,320/MT, reporting an increase of 6% WoW.

We advise investors to keep eye over a potential trade war as President Donald Trump’s move toward long-promised anti-China tariffs on Thursday triggered a severe response from Beijing. Chinese authorities said they could hit 128 U.S. products with tariffs in response to Trump's plan to slap charges on up to USD 60 billion worth of Chinese products.