Polymer Supply Increased But Demands and Trade Volumes Went Down

Report of the market for petrochemical products on the commodities shows that at the third week of Nov. 2017, both demands and trade volumes decreased، though the supply was increased and experienced less prosperous deals.

The PIMI expert on petrochemical products says that at the week ending to Nov. 23rd, the offered trade volumes have grown a lot more than its former, week resulting in 485.1 tons of increase in most common commodities. While last week the PIMI article reported about a supply volume of 136 tons (click here).
This was due to increase in supplies by companies like: Propylene Jam, Maroon, Ilam, and Abadan petrochemical complexes which provided more of their supplies on Wednesday Nov. 22nd. Considering the volume of supply of these PC units, we can say the offered volume increased by 435.5 tonnes during the week. But, the total volume of sales decreased by 864.6 tons compared to its former week’s experience. Of course, the main reason for this decrease should be the last month’s drop in supplies of some more attractive brands, like textile grade of polypropylene, that affected this decline,
Of course, due to the volume of 3950 tonne deliveries that are expected to be fully purchased like other weekly basis, the volume reduction will to reach 914.2 tonnes, which is not a great reduction in total trade volumes.
In total, more than 70% of the products supplied by the PC companies were purchased, and as a comparison, in the past week 83% of all supplies were purchased. Out of these, 31 grades of the 80 grades supplied, were sold at competitive prices, and the competitions were between 1% and 11%.
Another noticeable point is that, the volume of demands fell by more than 9,000 tons, which is noteworthy, while last week the volume of demand was increased by 6,000 tones.

The following table shows the PIMI’s ODTv index for the week between Sat. Nov. 18th-25th, 2017 at the IME hall of Tehran stock exchange: