US$ Last Strike on Iranian Polymer Prices and Markets
On the last Sunday (March 18th, 2018) of the Iranian previous year (1396) the PDID Office of NPC , in accordance with its conventional missions, officially announced the basic prices of polymers and petrochemical products for the materials that have limited distribution allocations domestically and should only be traded at the “IME” for those companies that have “B-Code“.
According to officials of the office, these prices are valid for the remaining days of 1396, and for the next three weeks for deals at the “IME”. This means that there will be no announcement of the base polymer prices for the first two weeks of the new year Iranian year 1397 (till April 9th., 2018).
According to the PIMI analyst, observers announced that this session of fixing the base polymer prices was strongly influenced by the problem of determination of the discovery price for the exchange value of the US$. Now, if the global prices of polymers were to grow in next weeks, this would have little effect on the growth of the base prices of the products.
For the week we are speaking about (March 11th-18th), the US dollar value rose by 5.5% and reached to 47,182 Rials, which was 2469 Rials higher than the previous week. This rise in the US$ base value, which is the main basis on the calculation of the base prices of polymer materials, has made the market prices for all commodities.
In the other words, under the influence of the US$ rising prices, all polymer grades experienced the base prices’ progressive increase in the prices. As a result and at least, commodities whose global prices were decreased at the global market, again experienced price rises by less than 5.5 percent.
The lowest increase recorded for suspension grade of PVC-S, and the highest increase was recorded for extrusion grades of HDPE by 7.6% growth.
Various bottle grades of PET met with a growth of 5.3% on the basic prices in comparison with the former week.
By increasing the US$ value in the last two weeks (the first weeks of the new year) which almost all factories were closed and there were a lot of challenges on social media about this year’s economical situation, no one can foresee that what will happen truly to the industry at this year.
Many believe that a very hard period could be expected for the industry at this year. We have to wait a week and see what will happen practically at the market.