Sun 23 Jun 2024 11:08 0

Petrochemical Market Report: Third Week of June 2024

End of Spring in Deep Recession / 14,000 Tons Reduction in Transactions

End of Spring in Deep Recession / 14,000 Tons Reduction in Transactions
As the solar spring came to an end, the petrochemical market plunged into a deep recession. Over the past week, transactions dropped by 14,000 tons, marking the lowest transaction-to-supply ratio recorded this year. Read on for the key events in the polymer products market.

According to Wiki Plast, the final days of this spring coincided with the Iranian presidential election campaigns. Some market participants believe this event has led to the postponement of decisions regarding the revision of petrochemical product pricing policies until after the new president takes office and the new administration is established.

While rumors of changes in market regulation guidelines and base dollar rates circulate, no official announcements have been made yet. It appears that these decisions will await the new government.

Dollar Stability
Weekly fluctuations in the dollar have reached their lowest point, with the final free market dollar price at zero change as of Wednesday, June 19. The currency market, which often dictates trends in other markets, remains stagnant, resulting in a continued recession in various sectors, including the petrochemical market.

Brent's Return to an Upward Trend
Brent crude oil, which ended the previous week at $82, continued its upward trajectory, surpassing the $85 mark. Rising oil prices could improve feedstock prices, subsequently benefiting the petrochemical market.

14,000 Tons Drop in Transaction Volume
The polymer products market concluded the third week of June with a reduction in supply by 3,287 tons and a decrease in transactions by 14,171 tons compared to the fourth week of May. The free market dollar remained stable at 580,000 rials, showing no significant volatility.

Key Points About This Week's Transactions:
- Total transactions this week amounted to 85,583 tons, a reduction of 14,171 tons from the previous week.
- Demand volume decreased by 25,371 tons compared to last week.
- Buyer competition in all polymer groups declined.
- 76.8% of supplies were traded, the lowest transaction-to-supply ratio recorded this year.

Top Transaction Declines This Week:
- The most significant decline was in the heavy-duty polyethylene blow molding group, with a decrease of 3,220 tons from last week.
- Heavy-duty polyethylene film followed with a reduction of 1,872 tons.
- Total transactions for heavy-duty polyethylene blow molding were 4,080 tons, and for heavy-duty polyethylene film, 1,872 tons.

Content points: 100%
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