Today, Monday, July 22nd, 2019, was the day of supplying and the official offerings of various grades of polypropylene and PVC. Compared to the same day in last week, today’s trading volume fell by about 2.700 tons, which is a significant figure.
The main reason for the near 3,000 tons decrease in trading volumes today is the expectation of Iran’s stockbrokers to lower the base prices for polymer materials as a result of devaluation of the US$ in the coming weeks. Although some specific reasons for certain materials, such as PVC, have contributed to this decrease in the volume of trading, the main reason is obviously the probability of cheaper purchases of polymer goods in the coming weeks, which will discourage traders from buying and kept them waiting for near future.
Of the total 22,200 tons of polypropylene and PVC grades, offered today, just over 20,700 tons of demand were recorded, which fell sharply from last week. On the last Monday a demand for 29,500 tons were recorded, showing a fall of 8,800 tonnes this week, signaling the growing weakness of the market’s strong demand.
Also, of the 20,700 registered demand, today’s traded volume was 14,600 traded. Last week, the volume of sales of PVC and polypropylene was more than 17,300 and two weeks ago 16,200 tons. But. from this week’s offer of 10,900 tons of PVC was released, just over 5,800 tons being finalized. Reducing more than 1,500 tons of major types of PVC grades was the reason for the decline in the total volume of transactions today. The reason for this decline is the emergence of a rebound in the soft PVC industry, which was only a week away, and it was undergoing a recovery. Re-pricing of Di-Ethyl-Hexanol and DOP have returned to the top of the Rls. 200,000. which has led to a sharp fall in PVC purchases as compared to last week’s spark of hopes in these markets.
Of the more than 9,600 tons of fibre grade of PP, almost 6,300 tones have been traded, which was not interesting.
Today, also, about 3,300 tons of PP was supplied by petrochemicals, of which only 1,940 tons were traded by Iranian stock traders, to show that even in non-fibre types of PP only some grades are desired, and if high competition for some grades occurs, it does not mean a good market situation, rather it is meant a crisis in a few special grades.
This week’s film grade of PP deals, although improved in terms of volume of transactions over the past weeks, but it is essentially a continuation of the disappointing trend of recent weeks.
