For 5th Consecutive Week The Material Prices Increased For Many Polymers

Today, Sunday, Dec. 15th., 2019, the new base prices of the polymers were announced by PDID office of NPC a little later than the closing of the IME Petrochemical hall. Meanwhile, the base prices of most polymers were upward, with only three types of polyethylene grades and one polypropylene grade falling by between 0.16 – 1.0%. So, with the change in displaying of the price tables at this PIMI weekly price analysis, we now have a summary of of the market analysis for last week’s market situation. The US$ value for calculation of the prices was Rls. 110,534 which shows about 0.8% higher than last week.

Last Iranian week (Dec. 7-12th) the weekly trading volume of polymers recorded a decline and we saw a drop of 2.5% for the total volume. Last week, the volume of polymers traded on the stock exchange was close to 85,990 tons, which is still high enough. More precisely in the last 4 weeks the trading volume of polymers on the stock exchange was attractive, and it can be said that it was the best 4 consecutive weeks of trading that have been recorded for this year.
However, we can see that during last year the weekly average for the trading volume has been less than 63,000 tons, and the same figure for the first 6 months of this Iranian year has been about 52,000 per week as an average. These figures all indicate that the situation in the stock market is favorable, and should not be a concern, though trading volume may decline this week, which seems reasonable.
During last week the volume of the weekly supply with 2.47% growth reached to 95,503 tons that is the highest possible since 10 months ago. In the other words, the amount of supplies have been attractive for the whole market, because their average are higher than the first 6 months of this and last year.
The volume of demand recorded for polymers on the stock exchange during last week fell by 13.67% and reached to 122,424 tons that is still high enough at this newly relaxed market. Other features of last week’s trading include the percentage of trading on offer, and we saw that almost 90% of supplies were traded at the IME hall.
The ratio of Demand-to-Supply also reached to 1.28, which means a record of 128 tones of demand per 100 tons of supply.

As can be seen in different data the market has been moving in recent weeks for an increasing volume of trades, which may be looking for peak trading volumes in the week leading up to Dec.5th, with weekly trading volume records for this year. This means that the market for polymers will slowly enter a declining phase in terms of trading volume so that both the purchase situation in the market is balanced and the stocks are consumed slowly. These cases show that the market for polymers, driven by the volume of industrial demand in this commodity group, has peaked on similar days, and that the boom in production in the complementary polymers industry can be spoken of.
What matters most, however, is the continuation of attractive trading volumes in this market, which will mean a real and sustained production boom that unconsciously captures the attractiveness of end-product purchases in the domestic market and the export boom of polymeric artifacts. Now that the free-dollar price is on a relative downward slide to its peak, it has to wait for the polymers to roll out and more precisely the actual volume of production and actual consumption of raw materials can now be tracked with greater transparency. So the volume of transactions in the next one to two weeks ahead is of greater importance than in the past few weeks.

As mentioned above, the typical showing of the PIMI price tables ave been changed since this week. In fact we have changed the words to figures. The following tables (1 and 2) show the incremental and declining base prices compared with that of last week. So, any reader interested in a material or price change can find all in a blink.

Table 3, like every week shows the weekly trade volume and its ODTv indexes.

Regarding the 3rd table, as a summary one can say PP has been the most attractive material within all commodities. Also, The highest trades at one bid have been:

1- PET TG645 by 3,652 tons (same as demand) out of 5,214 tons for Rls. 83,546 without any competitive on price;

2- LLDPE from the polyethylene group by 3,102 tons out of 5,896 tons of demand and  the same as what was supplied. Apparently it faced with a small competitive of Rls. 940 /Kg. and traded for Rls. 98,499 / Kg.,;

3- Suspension PVC which due to lack of supply (3,014 tons) in front of about a double demand (6,006 tons) and so dealt with a higher competitive price of Rls 99,869 /Kg., were the offered price was Rls. 9, 951.

Table 1: The base prices for the materials with the incremental prices in comparison with that of last week.

Table 2: The base prices for the materials with declined prices in comparison with that of last week.

The following table shows all ODTv figures for material trading between Sun. Dec. 8th and Sat. Dec. 14th. 2019.