Market Improvement, Increasing Supplies and Trade Volume after Eid-al-Fatir

By the end of Ramadan and two days celebrations of the Muslim’s Eida-al-Fatir, the trade hall of the IME witnessed a boom in the Iranian polymer market. Coincided with the first week of July, the 2nd week of the Iranian 4th calendar month (Tir Maah) experienced a considerable market improvement, even simultaneous with the increased base prices determined by the polymer price committee.

Market Improvement, Increasing Supplies and Trade Volume

During last week, the offered volumes by the petrochemical companies increased after two consecutive decline in supplies and experienced a total of 8.382 tons of increasing in offers for diverse grades of polymers. The market touched the 70.000 tons of offered borders, which was a wise decision for keeping the trade balance and preventing of the black markets.

It is noticeable that the true possible offers by petrochemical industries could have been much more that what was supplied during the last week (Table 1), however, since the policy of the PC complexes is to offer the volumes near to the market demand, so they are trying not to offer a supply more than what seems to be traded at the IME hall.

Table 1: Comparison table for: June 25^th – July 2nd  (2 weeks ago) and July 2^nd – 9^th 2017 (last week)

Comparison table for polymer markets in Iran between two above weeks
PIMI.IR Portal	2 Weeks ago	Last Week	Deviation (+ / -)
Total offers (tons)	60939	69321	+8.382
Total Demands (tons)	72629	102,662	+30.033
Trade Volume (tons)	34971	50190	+15.219

US$ for calculation of the base price for deals at IME: For 2 weeks ago, 1US$= 37.541 Rials which shows about 288 Rials in comparison with the latest base price. Based on this base price the committee decided to keep all prices constant till after the first two weeks of the 4^th month of the Iranian Calendar (22.06.2017-7.07.2017). The price of 1US$ at the free market on 02.07.2017 was 37.880 Rials which had 230 Rials increase in comparison with the last week’s prices.

The following chart, also, shows the market situation in the last two weeks of the Iranian polymer market.

During the last week, also, the trade volumes of the materials increased by more than 15.000 tons again after two consecutive weeks of market decline. The amount of increase in trade volumes is also considerable, and one could say that, only after the 2nd week of May 2017, it has been a record for the weekly trading of polymers at IME.

To view details of the last two weeks’ of the Iranian polymer market and the prices you can refer to the table 2 below:

Table 2: Materials Statistics Between June 25^th -July 2^nd 2017 (2 weeks ago) and July 2nd -July 9^th 2017 (last week)

	Grade	Offers (Two week ago-tons)	Average Base Price (Last Week)	Highest Sold Price (Rials)	Offers (Last Week) (tons)	Demands (Last Week-tons)	Trade Volume (Tons)	Offers Deviations Volumes +/-
ABS
	Natural-50	70	68370	69059	70	140	70	0
	Natural-75	0	80260	N/A	40	0	0	0
HDPE
	Blowing	3832	37505	37889	4626	3550	3280	+794
	Extrusion	6812	40546	43134	4163	7106	3855	-2649
	Injection	1395	36520	36520	1613	1015	899	+218
	Film	4704	38468	38468	4286	1804	1496	-418
	Rotational	0	38163	38163	1195	522	522	+1195
LDPE
	Film	7506	41110	41110	10080	8302	4540	+2574
	Injection	110	N/A	N/A	0	0	0	110
LLDPE
	Film	6226	38143	39323	8481	6408	5924	+2255
PC
PET
	Bottle	5038	33859	37029	5632	10406	5632	+594
	Fibre	0	32004	32004	0	88	88	+88
PP
	Injection	2639	43034	43034	2656	21535	2152	+17
	Fibre	8017	37970	37970	693	693	693	-7324
	Film	528	38032	41836	0	0	0	+528
PS
	EPS	250	49032	53777	250	660	250	0
	GPS	2250	47018	47018	2050	1300	890	-200
	HI-Impact	600	50002	50002	600	390	390	0
PVC
	Susp’n	8194	30842	34618	8128	9366	6598	-66
	Emol’n	308	33988	34789	242	0	22	+286
SBR
	Dark	210	46791	50357	590	126	126	+84
	Bright	720	50357	50357	1905	250	250	+1185

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