Downturn Trend Of PET Price Continues For The 5th Week

Falling just below 1% in mid-week’s for the weekly average of he official US$ value, along with lower world prices of polymer materials, turned into two major leverages and lowered the prices of petrochemicals on the new prices announced by PDID on Sun. Aug. 18th, 2019. For last week’s analysis and prices click pimi.ir.IR 11.08.2019.

According to the PIMI analyst, today we saw most of the polymers base prices drop on the commodities to be traded in this week (Sun. Aug. 18-25th, 2019), and only the group of PVC commodities faced with base price rise.
Taken together, the trend shows that the general flow of prices in the world markets is decreasing, and that the recession in commodity markets is also spreading to the petrochemicals market. This important signal needs to be taken seriously because it is possible to continue this downtrend, though it is not yet possible to make a firm statement at the end of the week.
The downward trend in the world markets is likely to continue, which may be assumed as of two complex signals, along with fears that the dollar will fall.
In the past, general terms allowed to speak more openly about market prospects, but now things are a little complicated. Crude oil prices recorded a few spikes in growth last week and the average rate was up. On the other hand, there is still the potential for price declines in global petrochemical markets, which, coupled with weak demand and a relative increase in supply volumes, could lead to continued international price declines. Mid-dollar prices have been relatively low, but a few spikes in the free-dollar market are enough to push the market down. These all paint a vague outlook on the market’s future for the coming week, although demand in the domestic market has also lagged.
In the last two weeks, we have seen a decline in demand and a decline in weekly trading volume, indicating that some of the market demand has been marginalized and some changes can be expected to raise demand again. The trend could begin with rising base prices or the return of demand and rate hikes in the domestic market, but there is no guarantee of this happening.

The downturn side of the market:

Even most commodities were encountered with the price decline, but the respective downturn of the official prices are;

1- The PS commodity group had the highest decrease by 4.15% so that the price of GPPS recorded for Rials 114,005/Kg;

2- ABS with 2.98% showed a decrease of Rls. 4,335/Kg;

3- LDPE film grade materials with 2.28% decrease recorded the third row for price decline competition. Though only by 0.01% difference PET had to stay at the 4th row. It is the 5th week that PET has been in downturn trend and because of the material’s consumption peak some other involved bodies have given their opinion about this continuous decreasing trend for the PET market. (Read Here)

The following table shows the last week’s (Sun. 11th- Sat. 17th Aug., 2019) trade volumes, ODTv figures and minimum and maximum prices for the total number of 186 purchasing bids at IME petrochemical hall.