Decreasing Trend of Base Polymer Prices In Line With Global Markets

Today, Sun. Oct. 13th., new base prices were announced for Iran’s official polymer market. The 1.1% drop in the US dollar official value for purchases from the stock exchange together with the global price decline of polymer materials have also led the Iranian market to decline, with an exception for 3 grades.

According to the reports, today the PDID Office of NPC evaluated the US$ rate as the basis for discovery of polymer materials prices for Rls. 107.339, which was 1.05% lower compared to the previous week (Click Here). This, coupled with global price changes, has led the Iranian market to stay in line with international markets, with a downward trend in polymer base prices.

The trend in the base prices of polymer materials in the global markets has come together, along with the relatively steep decline in the value of the US$, to result a relatively significant decline in the price of most types and grades in the Iranian polymer market. Due to a drop in the last week’s trading volume, which was down 11,000 tons in comparison to its previous week, most experts had estimated that this week’s benchmarks to be crucial for the market orientation.

According to most experts, while the long-term decline in base prices is favorable to converters, but, given that we are on the verge of recession in the polymer market after three months, prices are likely to maintain relative stability or even increased. One of the things that is most likely to stimulate demand is the stability or not-so-slight increase in the base price of polymer materials. Because it increases the profit margin for free market providers who many of them have access codes for purchases without production of any plastic goods. It also creates a market uncertainty that results in higher purchases.

Anyway, this week we will see what effect these base prices will have on trading volume. Now we will have a look on incremental and declines sides of the market.

The incremental side:

1- PE 80, the extrusion grade of HDPE, with 1.8% increase in its base price was atop with an official closing price of Rls. 95,725 / Kg.;

2- The price of PE 100 with 1.7% increase reached to Rls. 100,235 / Kg;

3- The rotational grade of HDPE increased with only 0.1% which increased its prices to a negligible amount.

The declined side:

As mentioned above; Today most types and grades of polymers faced with declined prices. The highest price decreases belonged to:

1- SBR 1712 enjoyed the highest price rate decline with 3.9% in comparison with that of last week and its base price reached to Rls. 125,298 / Kg.

2- The 2nd row recorded for SBR 1502 with 3.6% reaching its price to Rls. 131,855 / Kg.;

3- Different grades of PET with 3.1% decline recorded the 3rd stage. Though, being far from summer days we may expect decreasing prices for the bottle grades of PET for next couple of months;

4- The film grade of HDPE with 2.4%; Suspension grades of PVC with 2.3% and film grade of LDPE with 2% price decreasing stood at the other rows.

According to the trading volume statistics (Table II below), during last week’s (Sun. Oct. 6-12th) official trade volumes at the IME‘s petrochemical hall a total number of 210 supplies were offered, out of which, 183 times of deals were successful to finalize purchases. At these deals the following polymer types recorded the highest respectively; PP with 36 times, HDPE with 30 times, LDPE with 18 times were the most attractive polymers.

The following prices are the free market prices on Sat. Oct. 12th., (one day before tomorrow’s price announcement). The GREEN figures show decreased prices, the RED the increased ones. While, the BLACK figure is showing the prices that remained constant, all in comparison with last Sat. Oct. 5th.

The following table shows the weekly trading figures including ODTv index for the week between Sun. Oct. 6th., till Sat. Oct. 12th., 2019.

The last “Market Analysis” article published at PIMI news channel was: Iran Polymer Market Returns To Its Downward Trend In Base Prices