A report on Petrochemical products market, first week of August 2019
Diminished offers and low trade rates
According to wikiplast, the amount of offers in polymer market diminished in the stock market and it made the trades experience a dropping trend which might as well continue in the future.
This week was not the best time to trade polymers and a decline in trades was witnessed. However, it had some differences with the previous weeks.
The offers decreased by 8.5% to reach 76000 tons last week, which is the lowest amount since 1st week of June.
This signal made the amount of trades decline to 43000 tons. Last week 56% of the offered goods were traded, which is an improvement in comparison to previous weeks.
The statistics specify that the reason behind the declining trades is low amount of offers. However buying appetite does not seem so great either.
Last week, the big news was the possibility to make 25% of transactions by credit. The detailed process is not worked out yet but generally this means easier transactions, hence improved trades. Many buyers might be holding back and postponing their purchases due to this news.
The prices had a decreasing trend this week due to the changes in governmental exchange rate. The exchange rate was 114320 IRR last week, but at the time of writing this report, it is 112400 IRR.
We may see mild or even no fluctuations in the governmental exchange rate in the following week.
This is due to the influence of global prices on governmental exchange rate which has a very weak tendency to decrease. However no precise prediction can be made and we have seen many cases in which the announced final prices did not agree with anticipations.
If global prices continue falling, then we may witness a decline in base prices as well.
The amount of trades has declined for most of product groups this week. In the following week we may see a competition among buyers and a rising trend in offers might help the market.
Some attractive grades have already experienced a competition among buyers and this might help the market to improve.
We have not yet passed the recession, but weak sparks of improvement are starting to appear
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- Growing trade rate in a week with many holidays/ Last steps before passing recession
- New hopes for further rise in demands
- Ongoing decrease in offers and trades
- Bare smell of a better market
- The exchange terror in polymer market
- A growth to just above the Harsh recession threshold
- A Recession, Deeper Than Expected