On Thursdays there are either no material deals, or not so important. so it is the time to have a look at what has happened during the week. In the 2nd week of December, 2017, the IME‘s petrochemical hall experienced tremendous growth in trade volumes. More than 40 grades of offered materials have been sold this week with a price competition that, unlike the past, can be said to have been unprecedented, indicating the inflammation of the polymeric market.
Considering the increasing value of US$, increasing prices of oil in the global market, and expectation for increasing the base prices by PDID office of NPC in coming weeks, the market participants have increased their price offerings for several materials in the free market and also have increased their purchases from the Stock Exchange channel. These actions has led to more price competition in the market as well. Although it should not be ignored that due to the lack of supply for some materials like textile type of PP, the market for these materials has been more inflammation for these materials as well.
The volume of supply this week experienced a relatively higher drop of 6,229 tons in comparison with supply during last week that experienced more than 5 thousand tons. Of course, it should be noted that groups such as polypropylene and PVC, despite the apparent lack of supply reduction, are actually faced with declining supply, as this week the volume of immediate PVC deliveries is less than 4,000 tons, as well as textile type of polypropylene that have also appeared to have risen supply, thanks to the launch of the 4,000-tons of low consuming grade of PP 564S from the Jam petrochemical unit.
This week’s trading volume was almost stable over the past week, with an increase of only 1.941 tons. If the supply volumes were not dropped for the attractive polymers, the volume of trading could have increased much more. Of course, it should be noted that due to the US$ rising value rate, the free market of Iranian polymer materials has been inflamed with extreme inflammation and the price of most products has increased a lot, which is why a new record has been registered this week and more than 40 grades were sold with competition prices.
In total, more than 90 percent of the products were purchased by the applicants, while last week, 78 percent of all supplies were purchased. In the meantime, 42 grades out of the 73 grades sold with price competition with increased prices between 1-17%.
This analysis will continue tomorrow and on Sunday.
