Wikiplast

Petrochemical Market Report: Second Week of July 2024

580,000 Rial Dollar Signal Hits Recession-Stricken Market

From Friday, July 5, to Wednesday, July 10, 2024, the free market dollar saw a decline of 27,500 rials. This decrease in the free market dollar occurs while the remittance market dollar continues its steady upward trend. By Thursday, July 11, the exchange remittance dollar rate reached 434,000 rials, marking an increase of 2,050 rials compared to the base dollar rate on Sunday, July 7.

According to WikiPlast, despite the increasing trend in the remittance market dollar and even the base prices experiencing slight weekly increases alongside global price fluctuations, the sharp decline in the free market dollar has plunged the market into recession.

In addition to the declining dollar, the increase in power outages from one day a week to two days a week for production units has resulted in reduced production. This means that even if there were hopes for a partial recovery from the recession, the country's electricity shortage has led to power cuts and lowered production rates.

This week, despite maintaining supply at around 106,000 tons, transactions decreased by 4,000 tons and demand dropped by 6,000 tons compared to the previous week. Below are the details of the petrochemical market for the current week.

4,000 Ton Reduction in Transaction Volume

The performance of polymer product transactions in the second week of July 2024 concluded with a decrease of 4,367 tons in transactions and a 5-ton decrease in supply compared to the first week of July. Key points to note about this week's transactions include:

- Total transactions amounted to 91,791 tons, which is 4,367 tons less than the previous week.
- This week's demand volume was 6,324 tons less than the previous week.
- Buyer competition for polyethylene decreased, while it increased for PP and PVC.
- 86.4% of the supplies were transacted.