Yesterday the base prices of the polymer materials for sales at stock exchange were declined and this was parallel with global price decreasing and the official US$ value in Iran. This price decline happened in a condition that the prices at the free market were already on a decreasing track.
Some analysts believe that the trade war between US and China has given a serious negative signal to the world’s commodity markets, that is, the declining of the prices of the crude oil and naphtha.
This general trend, the fall in world prices, coupled with the drop in the US$ value, led to a decline in base prices in the stock market, which we saw its results in the free market and weakening of polymers trading in the last two weeks on the stock exchange.
However, if this situation continues it may end to more demand and so more active market and trading. Given the market data, this week’s expectation for volume growth may be more reasonable than previously thought. Another factor that makes us optimistic about increasing the volume of polymers trading and, even more, exiting from the recessionary phase is what usually happens at the end of the 6th Iranian calendar month (Shahrivar equal to Sept. 20th.). According to recent recessionary experiences, the end of Shahrivar in Iran may be an important time to exit the polymer market from a recession stalemate. In recent years recessions in polymer market have lasted no more than three to four months, and usually by the end of Shahrivar, at least in terms of time. The theory of the stagnation period of the polymer market should end, unless this recession is different from other periods of recessions. If this happens then one can say: The Increasing Of Trading Volumes Could Be Optimistic.

By the way, as the result of yesterday’s falling prices, today the free market affected seriuously and except one material, all other poymers were faced with decreased prices. This is an expected trend for the converters.

The following table shows 57 times trading of polymers at the IME hall, and as it can be seen the PP was the most wanted material at the stock exchange.