According to an expert on the stock market in Iran, after several weeks of steady growth in the prices of basic polymeric products that has been consistent with the rise in global commodity prices and the price of US dollars, the price of some petrochemicals in line with world markets is increasing at a high rate and some others are facing price cuts. Of course, these prices are no longer a function of the steady growth of the dollar in the domestic market.
Last week, we saw a fall in prices on the free market so that the market trend was towards a weekly drop. One of the outcomes of this downward trend in the free market was also the reduction in the volume of the trade in polymers via IME, which indicates that the volume of demand in the domestic market has dropped through IME stock exchanges, that in turn means providing part of the real demand from the Bazaar stocked materials. A signal in supporting Bazaar!
Considering these cases, it is now possible to be optimistic to the reduction of the materials’ inventory in the warehouses. This is a sign of support for the Bazaar market, given the drop in the volume of traded polymers through stock exchanges, as the volumes of supply in the domestic market will decrease over time. At the same time, fragile tranquility has returned to the market, due to lower volumes of production in downstream industries, with the onset of cold days and the end of the peak demand for raw materials for the production of disposables, which has been the main reason for falling prices in these markets.
Meanwhile, the polymer prices in the free market has risen in the last week and has seen positive trends, and it seems to be in line with the global prices of petrochemical products. Last week, Nafta prices were up by 1.41%t, and traded at $ 502.88.
At the same time, the price of most of the polymer products in the Asian markets has stabilized this week and also, we have witnessed a drop in prices for products in China’s markets.
As our Friday news (Click Here) shows, last Tuesday, the ODV index of PIMI (Offers= Supply, Demand and Volume quotes) were 57.335, 104.462 and 40.500 tons respectively.
Please kindly note that due to religious important holidays in Iran, we don’t have the polymer prices comparison table, as the table is normally meaningful that the PDID publishes the new base prices for polymers. Last week, what was declared was covering two consecutive weeks, including this week. The market will open by tomorrow.
