IMT and IME Clashes Halted Polymer Supplies and Production Activities

Last week (Aug.19th-26th) the lowest volume of polymer transactions took place at the IME hall. As such the total trade volume of polymers at the stock exchange was close to 45000 tons, which is a worrying figure, as it was the lowest volume traded in a week since the early days of this year.

The polymer market was on a par with a price rise over its previous week, although strengthening controls led to some shocks from falling prices. The total trade volume of polymers at the stock exchange was close to 45000 tons only, which is a worrying figure, as it was the lowest volume traded in a week since the early days of this year.

This situation arose due to a more severe drop in the supply of polymers, especially as only about 47000 tonnes of supply were recorded, which was one of the lowest figures in recent years. As to the reasons for the drop in supply on the stock exchange, it should first consider the opinion challenges between the Supreme Council of the Stock Exchange and the Ministry of Industry. Of course, the output gap was a decline in the supply of petrochemicals. If the supply does not grow back and this situation continues, we should wait for another round of fail for the polymer industry, because there is no longer any way to meet their needs for raw materials. Unexpectedly, during the past week, we also saw the highest possible growth of prices in the free market, with the announcement of the news of the change in the commodity exchange formula, most of all, for the benefit of the intermediaries that increased their proposed prices.
According to the report, the difference between the Ministry of Industry and the Supreme Council on the interpretation of pricing practices, base rates for steel and petrochemicals were so severe that the supplies on stock exchanges stopped for two days. This meant that the market lost its two important business days last week, and this industries and businesses lost a lot of energy and faced with financial damages. The output of these clashes when eventually came to a halt that one of the lowest volumes of supply in the last few years, and the trade volume of polymers were recorded since the beginning of this year.
Analysts in the market believe that continuation of this situation has drawn a worrying picture of the market, although after all these events, there were no change in the price mechanism of the petrochemicals in the stock market. However, many industrialists hope to the re-opening of the market and resume their activity.

The following table shows the new prices as of Aug. 26th for one week till Sept. 2nd and its comparison with the previous week.

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