Weekly Polymer Prices Analysis and ODTv Tables from PIMI

Based on the reports of the PIMI’s expert on the Iranian stock exchange: In the first week of December 2017, (Dec. 2nd-9th) the polymers’ trade volumes in the IME hall experienced relatively good deals, and the statistics showed the large number of presence of market participants (supplier and producer). In the past week, the volume of supplies grew considerably over its former week and recorded an increase of 23,000 tons of purchases.

During the week, the volume of trading also had a tangible increase of 17,000 tons in comparison with a week earlier. It was expected that if the volume of supply for the attractive brands for the market, would have been increased then the volume of trading also could be increased.
Altogether, nearly the same as last week, almost 78% of the products were purchased by the applicants. In the meantime, 36 grades out of the 114 exposed grades were sold at competitive prices, pricing competitions ranged between 1-17%.
The volume of demands, as well as supplies, increased by 32.000 tons compared to the former week. This increase in demand was due to the attractiveness of special grades due to the cold season. Also, part of the consumer’s market was lower in the raw material market, with lower average prices than the dollar. The experience has proven that normally the exchange value of US$ increases in the end of Decembers in Iran due to increasing in seasonal trips, and since the polymer markets are heavily influenced by the US$ value in Iran, so, it is considered as one of the most influential factors in polymer price increases.
In the week that passed, the highest price competition recorded up to 16% for the S65-PVC produced by Bandar Imam PC Complex, due to the high domestic demand for this type of PVC. On the other hand, the S70-PVC material, which was released for supply during last week, and was still the most attractive product for applicants, will again be screened this week for applicants looking for this product.
PVC’s Competitive Markets:
Badly, according to available statistics, all grades of PVC had the most competitive prices and all petrochemicals producing this product, such as Bandar-Imam, Arvand and Abadan, showed price competition in supply materials.
The competition for this commodity group has been unprecedented over the past week, due to: Lack of supply in the market; Problems with the loading and delivery of petrochemicals; The sharp drop in supply of immediate deliveries in the past few weeks, and finally, Market-driven and control by market intermediaries and black mailers. This was the situation that the market price for this product on Tuesday (Dec. 5th) reached to more than 4300 tomans (about US$ 1.03), while its purchase price in the stock was about 4100 (about US$ 0.97) Toomans. This is while the price increasing of this product in the global markets continues.

The following table shows the 1st week of December’s (Sat. 2nd-Sat. 9th) ODTv index of PIMI at the Iranian markets.

ODTv stands for the “Offering, Demands and Trade volumes), and prices are all in Iranian Rials and the US$ exchange values were changed from 1 US$ at 41.460 Rials on Dec. 2nd to 1US$ at 41.900 Rials on Dec. 9th. 2017. During last week the base prices were determined according to the US$ discovery value of 1 US$ for 41.128 Rials.