Weekly Polymers Trade with the First Calm Market Day

Even today was a very calm day for the polymer trades at the IME’s petrochemical hall, but the petrochemical products market experienced modest conditions last week and the supply of polymers and chemicals on the stock exchanges increased.
According to the PIMI market analysts, the relative stability of the petrochemical market along with the relaxation of the free market and the increase in the supply of attractive grades has led the market to distract from inflammation in attractive grades and move towards supporting downstream industries. Increasing the supply of polystyrene and polypropylene products has led to a reduction in inflammation in these two important markets, but we still need to increase the supply of the extrusion grades for pipe & fittings.

Based on this report and analysis, the petrochemical products market experienced moderate conditions last week as we saw the growth of supply in the commodity group of polymers and chemical products on the stock exchange, which indicates that trading conditions in this market have improved, and that, it is possible to increase the volume of production in Complementary industries. One of the most important points in this market is the increase in the volume of trade in chemical compounds on the stock exchange. The growth of 6.8% of the volume of chemical compounds on the stock exchange and the record of 33,373.9 tonnes, which is a moderate figure, clearly indicates the general conditions on this market, which increased the demand for chemical products by 37.27%.
This figure has been the highest since the beginning of July and clearly indicates the willingness of buyers on the stock exchange for this commodity group and the attractiveness of supply. Also, last week we saw the competition for the purchase of monoethylene glycol, styrene monomer, monoethylene glycol, melamine crystalline, tetracyclic acid, monomerinyl acetate and xylene blend in the chemical product group.
Last week, the Polymer market saw a 3.91% rise in stock volumes and a record high of 68,461.5 tonnes, the highest in the last five weeks. This situation, although considered an important signal to support the market, but the relative retreat of demand eventually led to a 9.6% decrease in trading volumes, although this retreat could be evaluated for technical reasons because demand from some commodity groups migrated to other groups that are technically feasible. For example, we are seeing an increase in demand for pipes and heavy extrusion grades, which indicates that we need more supplies in this group.
Due to government policies in the field of preserving water resources, demand for this group seems to be increasing, which if supported, a more effective role can be taken to protect water resources in the petrochemical industry. Meanwhile, the inflammation in the polystyrene market and textile polypropylene have diminished, which should be the main reason for the increase in supply volumes.

The following table shows the weekly ODTv index of PIMI for last week from Oct. 14th-21st.