Wikiplast

Petrochemical Market Report: Fourth Week of June 2024

Global Prices Awaited in Petrochemical Market

The second round of the presidential election took place on Friday, July 5th, resulting in Masoud Pezeshkian becoming the next president of Iran. This election could potentially reshape Iran's economy for the next 4 to 8 years. Another significant event this week was the rise in oil and naphtha prices, which could have a substantial impact on global petrochemical prices.

According to WikiPlast, last week saw Brent crude reaching as high as $87, while naphtha experienced a striking increase of $45, surpassing the $700 mark. This sudden rise in naphtha prices is expected to significantly influence global petrochemical prices. The ICIS publication's prices are anticipated to reflect the impact of this week's naphtha price surge.

In the currency market, the dollar peaked at 620,000 rials earlier in the week but returned to a downward trend, settling back into the 600,000 rial range by the end of the week. If this downward trend continues, it could signal increased purchasing activity in the market.

 Limited Increase in Polymer Grades
The 13th base prices for petrochemical products were announced on Sunday, June 30, 2024, showing very limited changes. The exchange rate used for calculating this week's base prices was 429,960 rials, an increase of 1,110 rials (0.26%) from the previous week.

A comparison of the price table shows that most product changes correspond to the 0.26% increase in the exchange rate, indicating very limited adjustments. Among the products priced with the exchange rate, SBR saw a 2.7% increase, rising by 22,760 rials from the previous week, leading the price increases. ABS group products followed with a 1.6% increase, up by 13,400 rials from the previous week, ranking second in terms of weekly price increases.

 Polymer Transactions Exceed 90,000 Tons
The polymer product transactions concluded for the fourth week of June 2024, despite a 4,090-ton decrease in supply, showing an increase of 1,779 tons in transactions compared to the first week of June.

Key points from this week's transactions include:
- Total transactions this week amounted to 96,158 tons, an increase of 1,779 tons from the previous week.
- This week's demand volume was 17,573 tons higher than the previous week.
- Buyer competition for polyethylene and polypropylene was upward, while PVC saw a downward trend.
- 90.5% of the supplied products were successfully traded.