Declined Supplies Coincides with Prices-Demands Moving Ahead in Polymer Market
According to the IME’s (Iran Mercantile Exchange) experts, which monitor the polymer markets everyday and normally have a summary, briefing and weekly analysis at the end of the week (Thursdays, when there are no official trades), the 2nd week of September has experienced “Good Deals” (as they say)!
The week end to Sept. 14th., started with a sharp increase in all polymer base prices by another intended increase in the US$ price for calculations (Read the News Here). Then after a while the bids started at the IME hall and continued till Wed. Sept. 13th. However, since the IME is just an official way of polymer trading and the main activity carries on till Thursday evening, so Fridays are the days (from now on at PIMI) which we will publish this weekly analysis.
During the week the total supplies declined by 1330 tons in comparison to the last week, when the market had also faced with another decrease of about 7000 tons compared with its former week. However, due to an extra increase of supplies by Jam PC Complex, one can say that practically the total offers were increased at a whole.
In comparison with the last week an increase of about 1250 tons was recorded for the total trade volumes of polymers (table I) and reason could be justified by the world prices increase which made extra purchases more attractive for brokers. Experts believe that if there were more extra offers, the market also would have been more interested to buy and stock it. Though, the purchases were made only for 31 out of 75 offered grades, and only 86% of the offered polymers were traded during the whole week.
At the same period, IME faced with about more than 14000 tons of extra demand mainly for some PP and PE grades which are always attractive in Sept.-Oct each year in Iran. Table I (below) shows the summary of what happened during the week and its comparison with the week ended to Sept. 7th.
|Comparison table for polymer markets in Iran for last 2 weeks|
|Sept. 2-7, 2017||Sept. 9-14||Deviation (+ / -)|
|Total offers (tons)||52000||50670||-1330|
|Total Demands (tons)||133110||147670||+14560|
|Trade Volume (tons)||42520||43770||+1250|
Out of about 1330 tons of less supply, the highest decline of offers belonged to the HDPE extrusion type. The next shrinks in supply volumes belonged to LLDPE and PP injection grade. At the same time the IME hall faced with some extra supplies in compare with the former week, including for LDPE film grade, PVC different types and HDPE film grade.
The highest demand for the week was recorded for fibre grades of PP, injection PP and PVC.
The following table shows the supplies (for 2 consecutive weeks) and demands of most attractive polymers for the Iranian converters.
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|Trade Total Volume||Supply variation|
|PVC (all grades)||8404||9874||15020||9808||+ 1470|
|HDPE (Extrusion)||5026||2512||8648||2512||– 2514|
|HDPE (Injection)||0||480||216||216||+ 0480|
|PS (All Grades)||2400||2750||1320||940||+ 0350|
|PP (Injection)||3332||2597||26984||987||– 0735|