A report on Petrochemical products market, 4th week of September 2019
According to Wikiplast, trading polymers has been popular and the trade tare is around 70,000 tons. This shows promising future but the transition from recession to recovery might have consequences that might lead to some complexities.
The insignificant fall in the trade rates of last week cannot be considered as a considerable negative factor; even if we experience further decline.
In the current situation, the recovery is yet to be sensed by some dealers or even manufacturers. The fluctuating prices make the improvements hard to believe.
There was a partial decrease in the prices last week, which was a bit shocking due to the growing trend of the previous weeks.
Frankly speaking, during transition phase, such fluctuations are perfectly normal and they might even happen again.
However, the prices determined by stocks market can even overshadow the increasing trade rates.
All these mean that we are currently in a transition phase and the market needs to be refreshed in order to pass this recovery period. In this situation, fluctuating prices are one of the possible outcomes.
The faster growth in demands in comparison to offers is one of the promising points of last week.
Although different grades have different status, we can generally say that the overall atmosphere is positive.
The fact that the amount of trades has been recorded around 70,000 tons for the second consecutive week, confirms the serious activity of the market and higher tendencies to purchase; even if the stocks do not show promising activity.
During periods of fluctuation, dealers make better profits, while in times of stability, manufacturers have better situations.
The weekly trade rates are above the average and demands exceed offers. Both of these factors are important.
If this trend continues, we can hope for a change in the market conditions and even more positive data, as mentioned, this transition phase will not be without consequence.
The fluctuations and unpredictability are the most obvious examples of this.
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- Disregard of Polymer Market for USD Rate
- Serious resistance of the polymer market
- What can prevent Polymer trade rates from dropping?
- Growing trade rate in a week with many holidays/ Last steps before passing recession
- Persistent pessimism in the market
- New hopes for further rise in demands