PIMI — During the week to August 27th the supply and demand for petrochemicals in the Iranian market went opposite ways, with supply soaring at the same time as demand plunged. The falling demand was particularly a result of PET bottle grade buyers, who set back this week.
The customers of this grade adopted a conservative policy after news broke that supply was going to increase to 5 thousand tons and order ceilings were going to become monthly. The PET bottle grade customers thus saw a decline in prices on horizon and preferred to hold back.
Another issue that contributed to the heated state of this group of supply was the fact that all of them came in the form of futures.
Also during the week, the supply of PP bottle grade went down, since Navid Zar Shimi did not offer any. Maroon also offered only 440 tons, with the result that the grade was dealt at the price ceiling.
The overall market during the week witnessed good volume of trade, which was 7.350 tons more than last week’s. This is while last week’s supply had experienced a fall of 3,000 tons compared to the preceding week.
The volume of trade for the week lowered by 1.382 tons, which is not of much significance. All in all, during the past two weeks trade fell by 5,000 tons, the volume of trade falling once more below 45,000, which is not a good signal. One observation here is needed, which is the fact that this month included five working weeks, and the rations had already exhausted.
Over 64 percent of the supplied material were purchased. The number had stood at 75 percent the previous week. 27 out of 85 grades were dealt at competitive prices, ranging from 1 to 10 percent of initial prices.
The highest increase in supply had to do with HDPE and extrusion, with a rise of 4.681 tons. The reason for this was Jam petrochemical’s starting to produce and offer.
Nevertheless, the longest fall in supply related to PP fibre grade, equal to 1.481 tons. PET bottle grade also saw a supply decline of 858 tons.
Last week petrochemical products dealings in Iran Mercantile Exchange proved stable base prices with positive inclination. The most important reason for this could be stable crude oil prices.
Table below shows price variations for the last week (Aug. 20th- 27th, 2017) for Week to Aug. 27th
