Petrochemical Market Report; Third Week of July 2024
Power Outages in Production Units and a Sluggish Petrochemical Market
According to WikiPlast, amidst stable global prices and free market dollar rates, the exchange transfer dollar is on the rise. Over the past two weeks, the exchange transfer dollar has increased by nearly 5000 rials, reaching 436,500 rials. This 1.1% growth suggests that if global prices remain unchanged, base prices on July 21 will see all goods potentially increase by the same 1.1%.
The third week of July coincided with the Tasua and Ashura holidays, resulting in Monday and Tuesday being public holidays. Consequently, base prices were not announced, and Monday's offerings were moved to Sunday, while Tuesday's were moved to Wednesday. In this semi-holiday week at the end of July, the market showed little vigor. Most raw material suppliers were on holiday, leading to a significant drop in transaction volumes.
The free market dollar struggled to rise above 570,000 rials. Despite efforts to maintain a position within the 580,000 rial range during the holidays, it failed to stabilize and retreated to 570,000 rials by Wednesday.
Given these conditions, Iran's polymer raw materials market in the third week of July 2024, influenced by holidays, limited dollar fluctuations, and relative stability in global prices, retreated to the 80,000-ton range
Decline in Transactions by 5,000 Tons and Retreat to the 80,000-Ton Range
The trading performance of polymer products in the fourth week of July concluded with a decrease of 5,155 tons compared to the third week, despite an increase in supply by 694 tons
Key Points about This Week’s Transactions:
- The total transactions amounted to 86,636 tons, which is 5,155 tons less than the previous week.
- The demand volume this week was also 14,243 tons less than the previous week.
- Buyer competition for polyethylene, polypropylene, and PVC declined.
- 81% of the supplies were traded.
Wikiplast