A boom in polymers trading sparked by fears of further price growth

According to INPIA, quoting the world of economy, this level of attractiveness for the trade of polymer products occurred with the stimulation of demand and its growth of 30%; So that after 7 weeks, the volume of demand entered the upward channel and against the volume of 87,070 tons, 128,062 tons of demand was recorded, while the base prices in the commodity exchange with the lever of increasing impulses Half-currency prices and world prices were all green. The steady rise in the price of the Nimai currency, which is the strongest stimulus to last week’s rise in the price of polymer products, has raised the hypothesis of applicants’ fear of continued growth in the coming weeks.

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However, part of the growth in demand can be attributed to the increase in optimized quotas for PVC products.

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Of course, the beginning of the month and the allocation of new quotas can not be ignored because it is another reason for the entry of emotional demand into the market. Therefore, in order to examine the details of the transactions of polymer products during the last week, “World of Economy” has had an interview with Dr. Masoud Jamali, a petrochemical market expert.

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“Polymers started last week when their base prices experienced a significant increase with the leverage of the exchange rate,” Jamali said. So that the average price of the half dollar increased by 633 Tomans and was applied to the base price of petrochemical products. Therefore, we saw an increase in prices in most polymer products, the lowest of which was related to polypropylene, which was accompanied by a change of 3.31 percent, and the highest increase in the base price was related to PVC grade S57, which experienced an increase of 68.68 percent and a 1,455 Tomans recorded the growth of the base price. The increase in the base price of petrochemical products in the commodity exchange caused the free market price of these products to experience significant growth last week, and the price increase was seen in most grades.

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He continued: “On Sunday last week, we saw the supply of non-optimized products, out of a total of 4,592 tons of supply, a demand of 5,128 tons was formed against it.” The confrontation between supply and demand on this day caused 73% of the supply to be traded and the volume of transactions reached 3,353 tons. On Monday, with the growth of optimization quotas, the purchase of products that had a relatively slow market increased. The highest quota growth was for heavy-duty extrusion and light injection polyethylene, which increased the valid time period for purchasing their optimized quotas to 12 months. After that, we can mention products such as heavy-duty, injectable polyethylene, dark and light rubber styrene butadiene, linear light and film polyethylene, whose optimization quotas were increased to 6 months.

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He added: “On Monday, as before, the supply of products such as polyvinyl chloride, polyethylene terephthalate and polypropylene in the commodity exchange took place, the supply volume of these products was 27,683 tons, which was met with a demand of 53,337 tons.” Of this supply, 27,082 tons were traded, which was equivalent to 97.82% of the total supply volume.

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Jamali stated: Due to the reform of PVC quotas, this week we saw an increase in demand for this product; Because the companies whose quotas were reduced, submitted the necessary documents to the National Association and were examined in specialized committees. Therefore, many of the quotas of these units increased and the amount of demand that had reached 27,000 tons in the previous weeks following this management policy to control the price competition of this product and eliminate the manufacturer of the facade, increased to about 50,000 tons last week. کرد. Despite this significant increase in PVC demand, fortunately there was no turmoil in the market for this product, and last week’s trades ended in a calm manner. So that the price competition, despite the fact that there was 12,943 tons of demand in the market, was not very noticeable. Unlike PVC, for the textile polypropylene product, which usually experienced very high price competitions in recent weeks, these competitions were repeated and in exchange for the supply of 13,244 tons, there was a demand of 29,697 tons and price competitions above 30 Percentage was experienced in most textile grades. The polypropylene film witnessed a similar event and unfortunately saw competitive percentages of up to about 49.13. Chemical polypropylene also experienced 34.18% price competition in some grades.

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This market expert also examined the commodity exchange transactions on Tuesday last week and said: 50 thousand and 398 thousand tons of polymer products were offered in the physical market of the commodity exchange, against which a demand of 58 thousand and 93 tons was formed and 38,472 tons, equivalent to 76.33% of the supplies, were traded. On this trading day, there was reasonable and limited competition in most products that usually have a quiet market. But textile and bottle polyethylene terephthalates were an exception to this rule and continued to experience high price competition. The remarkable thing about the supply of these two products was that all their offerings were made in the form of inductors, and perhaps one of the most powerful stimuli for the occurrence of fierce price competition is these inductors. Styrene butadiene rubber was another predecessor with a 43% competition.