Polymer Base Prices in Iran Show a Descending Week

Today Sun. July 15th., like every non-holidays, the PDID Office of NPC announced the new base prices of those polymers and petrochemicals that should be traded at the IME bids. The prices are valid only till July 22nd, 2018. The calculation has been based on the US$ value of Rials 43.111 about 1.111 Rls. more than few weeks ago that the CBI announced the fixed value of the US$ as of 42.000 Rials. Regarding the global average depreciation rates, most of the commodities were expected to have lower prices on weekly basis, and it happened.

This week, could be called as the the red week for the base price tables announced by PDID office. Of course, red for brokers and green for converters. Unlike last week, that in a strange and rare event, due to the lack of international prices at the sufficient time of the Office, prices have risen as the dollar grew to a large extent. And made the table green for brokers.

Descending week

Most cuts:

As we have seen in the past few days at frequent posts in the  Telegram Channel of PIM, the prices of polystyrene products were more likely to fall in line with global prices, and most grades were evaluated at a lower price. However, there were some commodities and some grades that came up with a rise in the base price, which is not amazing due to rising value of US$. Though the price rises were negligible. An important issue may be that, despite the growth of 0.8 percent in US$ value, the average global price of polymer products has dropped so much that not only did the dollar rise, but prices also dropped. It was the first week with that strange event which, due to the lack of global prices by PDID Office, all the polymer prices grew for 0.5%. (Click Here for the last week price analysis)

For this week, the highest price drop, by 4.8% higher than the base price in last week, recorded for the HDPE extrusion grade of PE100, so that this highly attractive commodity in Iran faced with Rials 3000 drop. After PE 100, the highest reduction was achieved to the two other extrusion grades of HDPE, namely PE 80 and EX3, each with a 4.7% decrease in the base price, which reduced this price by more than Rials 2850/Kg. All in all, this week was a good week for PE pipes and fittings, although with this fall in prices> Though it’s possible to say that competition in the price ceiling is definitive, resulting in at least 10% which is expected to be added to the prices of these goods in the free market, which virtually prevents the products from falling as they should, for the converters, and thus also for the final consumer.

After the various extrusion grades of HDPE, the HIPS 7240 resin was the third one in highest price drop range. This product, with a decrease of 1.7% compared to its base price last week, was priced at 69,995 Rials/Kg.

Falling 1.5% PET PET bottles in hot summer!

After resilient polystyrene, polyethylene terephthalate (PET) grade bottles dropped 1.5 percent at all levels, which is due to the fact that we are in the summer, and the price of this commodity in the free market was 16,000 tomans per kilogram It’s not bad news. With a 1.5% decrease, the PET price of the grade grade bottle for its grades varied from 5950 to 6150. Indeed, the increase in pet bottlenecks in the free market is untenable and comparable, the authorities have pushed the price of PET bottles to 10 percent to 15 percent in order to eliminate this GAP price on the stock market and the free market. On the other hand, it will reduce the amount of its quota slightly for each person, so that any competition will be transferred to Iran’s stock exchange under the ceiling and this bubble will be bigger than the price !! Because if we continue to do so, we have to wait for bankruptcy of prefabricated and PET bottles, and by reducing the supply and demand stability (in fact, despite this hot summer with increasing demand), the price increase for the remaining bottles We will see the remainder in the market, with losses in this heating season going straight into the eyes of the consumer. Even if there is a lot of unemployment and a large number of bottles and bottlers are closed.

The Styrenene Bottamine Red Rolled 1502 also fell 1.4 percent lower in the base price, after PET bottles, the next highest drop in prices. Heavy polyethylene, linear polyethylene, polypropylene, polypropylene, polypropylene film, polypropylene, heavy polyethylene film were also among the goods that were faced with a decrease in their base prices, but the decline in prices of these goods It was under 1% and ranged from 0.5% to 0.1%.

For the rising prices and other relevant info, please refer to the following table.