Iranian Polymer Prices Go Towards Other Side of the International Trend

Like other Sundays, today July 29th, 2018, the PDID Office of NPC announced the new base prices of polymers which could only be officially supplied and traded at IME, no matter if much of it finds its way to the free market and/or smuggling routes.

According to the Plastic Industry Magazine (PIME) website, the  PDID office of NPC in contrast to its conventional pricing strategy, that is based on two factors; global price changes and variations in US$ value with respect to Iranian Rial, the worked to disclose the base prices of products in another way. Because if  it, this week the US$ value was not a main concern and so it was out of the basis on calculations. So, irrespective of down-turning of the polymer prices at the global markets the out-coming announced prices by the PDID office was a massive raise in many Iranian polymer prices. It seems that the old calculation method no more works for higher benefits of the petrochemical units. Wondering how the PDID office is now far away from its main mission, i.e., supporting downstream industries.

Facing with the price gap between the free market and the stock exchange, petrochemicals’ marketing departments are more interested in exporting or outsourcing activities (though contrary to the law), while at the same time, the PDID office is also pleased to act in favour of the semi-private petrochemical units by maintaining the supply floor, regardless of its former formula, and pushing for price increases.

For this week’s calculations, the  US$ value rose Rls. 378 reaching to Rls. 43.878 which shows an increase of nearly 1% (0.9%).

The HDPE extrusion grade of PE 100 increased by 6.4% that is the highest price growth rate, reaching Rls. 63.280 / Kg.  This price pushes increases the official price this polymer by Rls. 3.170 in comparison with last week.

PS 7240 stands after PE 100, with a 6.2% increase in base price as the second highest observed price rise. The next is LLDPE with 6.0% that is equal to Rls. 2.800/ Kg for this commodity.

The lowest price increase observed for different bottle grades of PET as the prices rose up to Rls. 57,000 to 60,000. Being funny, when the official prices were the base for trading at the IME hall, the free market brokers were selling the same to factories by Rls. 100.000 more. This day-to-day widening gap between official and free market prices are one those things that are out of the government’s control, though the scenario is only against the benefits of converting factories and for sure the consumers.

Following table shows all the pricing facts for this week’s price announcement and its comparison to last week prices. (Click Here for more comparisons with former weeks).