A report on Petrochemical products market, last week of July 2019
Bare smell of a better market
According to Wikiplast, 47,912 tons out of 84,629 tons of offered polymers were traded this week. This is a 4,400-ton increase comparing to last week.
Another significant sign is the 10,690-ton growth in the demands, increasing them from 53,913 tons to 64,603 tons this week
This week, the base price of the products decreased, partly due to the 911IRR fall of exchange rate and partly because of the global decrease in prices. Governmental exchange rate is still decreasing to this day and also the average weekly exchange rate has had a 300IRR decrease comparing to last week.
Approaching Moharram rituals has caused a growth in demands for plastic bags and dishes. Therefore, despite the global decline in the base prices, we could see an increase in price of Polystyrene and Polyethylene groups.
Two other contributing factors can be considered in this week’s trades: The steady state of exchange rate as well as empty inventories of producers. The fluctuating exchange rate in the past two weeks had made it difficult to predict the future situation of the market, so the buyers had decreased their purchases to the minimum because they anticipated the prices to fall even more. Yet this week due to the steady state of exchange rate, the tendency to buy has grown.
On the other hand the inventory of buyers is running low and looking at the stability of the exchange rate, they are starting to buy again.
The concern of approaching Ofogh is another reason that buyers prefer to purchase their needs as soon as possible.
The stocks are going up as well. In order to help the market situation, Iran stock market issued a statement, according to which the maximum limit for Behinyab stocks increased.For most products “no limit” status has been recorded.
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- Persistent pessimism in the market
- Ongoing decrease in offers and trades
- Diminished offers and low trade rates
- The exchange terror in polymer market
- A growth to just above the Harsh recession threshold
- The nightmare of an inflationary recession
- A Recession, Deeper Than Expected