On Sun. July 14th, the day of base price announcement of PDID office of NPC, once again the prices went up and so, it was the case for the fast reaction of the free market to increase the prices.

According to the PIMI reporters today’s US$ value as discovery element of the base prices of polymers (like every Sunday in Iran) considered 115.773 Rials. This meant an increase of more than Rls. 2,410/US$ or 2.13% compared to last week. This official increase in US$ value played an important role in increasing the price of polymer materials
As reported before (Click Here), last week, after six weeks, the trading volume of the polymers in Iranian market dropped to just over 50,000 tons. However, analysts optimistically believed that if today’s price announcement shall not be in raising trend or at least remain stable, then the trading volume will not drop again below 50,000.
Perhaps, despite the rise in prices, it will continue to do so, and in this week the registration for demands and the resulting trade volume will rise due to a preventive action for the market suppliers and the converters. In fact they may think that they will be faced with more rice rising and so decide to buy more.
We have to wait and see. But in overall, since the price rising for almost all materials has been more than 1% (except for PP fibre grade) there will remain no hope for a serious change in the trade market to the upward side.
The apparent weakness of liquidity does not allow converters to compete and the rise in base prices means deepening recession, even if this week’s trading volume would be in increasing trend. Because of the reason for this increase, as we discussed above, fears of further increases in prices over the coming weeks can be evaluated. The price increase in this week’s free market trades will certainly also occur. However none of these can be interpreted as improving the market situation. Let’s take a look at the effect of this week’s price announcement on the polymers’ prices.
Incremental side:
Within 25 types and grades of polymer materials, only one type of {and four grades} were experiencing a downward trend this week, with 21 types and grades of other polymeric materials growing and even jumping in their base price. The respective higher prices are:
1- LDPE film grade with 4.13% in base pice that is Rls. 4.178 higher than lst week is at the first row;
2- GPPS with 3% recorded a new price of Rls. 127,587 /Kg. Even its price at the international market was almost intact.
3- Various types of PVC suspension with a 2.13% recorded a price rise from Rls 1.960 to 1.980 /kg. Though, their prices was stable in the global markets and sold in the markets of East and Southeast Asia without any changes.
4- LLDPE and HDPE extrusion grade of PE 80 recorded a 2.0% price increase.

Market downturn:
The only material group which recorded in the decreasing side was the variety of grades of PET bottles, which experienced a maximum of 0.1% decrease in base prices in comparison with last week.
In fact, changes in the price of PET bottle grades took place at a negligible extent (0.08-0.11% of base price decline), while last week, various grades of this product had grown more than 5.5%.
It should be noted that last week this material recorded about Rls 8.000 /Kg growth in prices, and this week, became cheaper only a maximum of Rls. 160. This change, of course could not have any effect on buyers. The summer season is the peak of the demand season for PET bottles, and we see that despite this, unlike last years, all supplies are not being sold, which can be attributed to the general downturn in the market and the economy of Iran.

The following table shows the free market values at the polymer free market of Iran on Sun. July 14th, 2019

The following table shows the deals in IME market for the week between July 6-14th, 2019