Yesterday, the prices of polymer products were announced at a time that there were two different following trends for products: Some products’ prices have risen in line with rising the US$r prices, when some others faced with falling prices in line with the declining trend in the global prices. Apart from PIMI’s yesterday analysis (please click here if you are a pro-member) you can also read this one prepared for today’s deals.
According to some experts, the prevailing trend seems to have been negative in the base prices of the polymer products, and these products have been moving against the US$ and oil price indexes. In the same way, it appears that the some of the polymers have reached to their highest expected price ceilings, and can no longer tolerate the higher prices.
In addition to this, some experts believe that the drop in the prices of some grades has been a cross-sectional one and we should wait for another round of the price increase for these products.
Over the past week, the US$ rose by 0.6 percent to 40,397 Rls. per US$. Of course, while the index fell slightly on the first day of the week, a boost in supply from the currency brokers worked as a brake for currency prices increases that has started from late October.
In addition, the problem of reducing the demand of Karbala pilgrims with their gradual withdrawal is one of the reasons for this weakness. At the time of setting the report, the US crude oil price collapsed at $ 55 and 64 cents, which shows 3.2% in comparison with last week.
The Brent crude oil index experienced an increase of 2.70% and traded at $ 62 and 7 at the time of setting up the report.
This week is the fourth week that the black gold market has been rising in price. Continuing growth in US oil production, reaching 9.55 million barrels per day, along with Goldman Sachs’ prediction of US production reaching 7.9 million barrels per day, has raised doubts about the strategic commodity. In addition to this, China’s demand growth outlook is another factor behind the growth of oil prices.
The pursuit of black gold for Naphta prices has also led to a 9.69 percent increase in the price of this strategic commodity and now it is costed $ 569.13 at the time of setting the report.
The most notable thing about Naphta is that in June 2008, the product reached its highest level of 1.180 dollars and 47 cents, and in December 2005 the lowest amount was $193. 36 cents. Comparing these figures with the current Naphta figure indicates that it is in a balanced price situation.
According to the announced price table, the highest price increase for HDPE extrusion grade is the leading driver of the price growth, up 0.4% compared to last week and priced at 52.553 Rls/Kg.
Extrusion grade of HDPE is one of the most demanded materials, due to government’s support in the water and agricultural sector.
PET Fibre grade is located on the opposite side of this trend, with a reduction of 3.4%, and ultimately priced at 1,643 rials.
The following tables in both *.docx and *.pdf formats show all trades during the last week (Oct. 28th – Nov. 4th., 2017) at the IME Hall:
