Polymers Sold Out In the Last Weeks TSE Deals
In an interview arranged with mass media on the transaction volumes of raw materials placed at Tehran Mercantile Exchange (IME) on the latest days of the current year (Persian calendar), Mr. Seyed Javad Moussavi, Products Manager in a jobber company, told: “Within the last week, this year, we witnessed huge rise in sale of polymer compounds via TME on Saturday, March 12. Several petchem plants (including among others, Bandar Imam, Jam, Amir Kabir, Tabriz and Tond- Gouyan) placed their commodities there and some received hot welcome from the purchasers, against all expectations”.
“64,044 MT, in total, of various polymer compounds were placed at TME, out of which 24,155 MT (37%) were sold. Indeed, we witnessed hot competition in prices offered by the bidders relative to 10 grades (out of the total of 50) and HIPS produced by Tabriz petchem plant saw, as usual, the hottest competition, followed by three textile grades of PP which were sold at great demand and highest bid. Next came PVC S65, made by Bandar Imam petchem unit, saw an astronomical rise in volume (64,000 MT) and was sold under the highest bid. General-purpose PS under technical No. 1540 made by Tabriz and HDPE F7000 by Mehr petchem plants attributed themselves 8% and 4.4% of the transaction volume, respectively”, told Mr. Moussavi.
“Two grades of PE, namely 0200 and 0075, produced by Bandar Imam facility, received keen competition by the bidders (respectively 2% and 6.3% of the volume sold), whereas HDPE, rotational molding grade 3840 made by Tabriz facility, saw relatively good competition. Other polymer compounds were transacted at base price. The bottle-making PET grade 781 produced by Shahid Tondgouyan petchem facility was virtually sold out while the plant’s other grade, 821, saw hot welcome. As bidding and sales figures reach maturity in terms of retailing and production in the new year, trades on polymers are noteworthy and sizeable compared to the previous and current years. It is to be noted, too, as the bulk of polymers are sold in advance and are to be delivered next year, they are tokens to the hot welcome by futures traders and serve, indeed, as a favorable ground for liquidity assurance by the petchem companies to receive the transaction prices at the last week, this year and to deliver the commodities in the next year. As sound financial instruments at the disposal of petchem companies, these offer multiple advantages to the plants and bidders alike. The latter can, by this device, forecast the increase in prices in the course of the next year and, at the same time, increase their margin of profit by retailing the commodities purchased ahead”, emphasized Mr. Moussavi.
