Experts’ views on the new guidelines for regulating the market of petrochemical products

Abuzar Ansari_Expert Petrochemical and Petroleum Products Market Regulation Headquarters

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Monopolies on the supply side and demand widening, along with currency price fluctuations and price shocks in the domestic market, were all issues that necessitated the writing of guidelines for regulating the product market. Petrochemical . In the market Petrochemicals تنها in only 4 commodity groups Domestic polymers and a few limited chemical compounds from domestic products We see the superiority of demand over supply, which is why it is important to write outstanding market regulation guidelines Has been. The point is exactly the opposite in the steel market; That is, the superiority of supply over demand is often evident. But the inflammation of this market and the criticism of the rules and regulations continue very strongly.

But the main data affecting the product market Petrochemical are two signals of global price fluctuations and half-price changes Is the currency. Global data is widely accepted, but a review of the performance of the foreign exchange market in Iran over the past few years shows that this market has always been subject to severe shocks. Fluctuations that take the possibility of planning from production units and in most cases cause an increase in production costs and thus a decrease in the competitiveness of companies consuming raw materials Petrochemical . Due to supply monopoly and inflation expectations in the macroeconomic fundamentals; And we needed instructions so that the supplier would not refuse the supply or delay its supply (requirement to comply with the supply floor). It is also necessary to write specific instructions and framework, which of course must comply with the upstream laws of the country, in order not to turn the raw materials to be used in the production line into commercial goods and capital and a burden for speculation and profit (demand management). It has been and is. To set market regulation guidelines Petrochemical ; Initially, in expert meetings (more than 30 sessions) with the presence of upstream and downstream private sector stakeholders and with the judgment and supervision of government organizations on each word and sentence and all clauses, a relative and not necessarily favorable understanding was created and then announced. . But in steel, one side wants to write a prescription for all sides. Unlike steel; We tried to make the implementation of approvals more important than notifying approvals in the market regulation guidelines Petrochemical . In the market regulation guidelines Petrochemical the smallest changes were shared for the comment of all members. When drawing instructions; In the meetings of the specialized committee Petrochemical none of the members of the committee had a veto and the expert meetings were respectful and Sometimes (especially on the issue of price) it has been challenging and sometimes very explicit. According to the execution and registration of transactions in the commodity exchange; In the market regulation guidelines Petrochemical , this guideline has been tried to comply with the upstream rules as well as the capital market rules . In the market regulation guidelines Petrochemical tried to accept the basic macroeconomic variables with the least intervention and Order in price and only by intervening on the supply and demand side of the price balance, because we believe that prices will not listen to the government; The price is smart and dynamic and no one is responsible for listening to the command at any level. Market regulation means the balance of supply and demand in proportion to changes in macroeconomic variables and does not mean lower prices.

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Prices in the market are smart and fluctuate with macroeconomic variables, so they can not be controlled by order and pressure. But also in the meetings of the specialized committee Petrochemical the market regulation working group clearly criticizes the members of the committee Petrochemical We have raised the issue of the lack of a fully competitive market in the commodity exchange, and these reviews are still ongoing. has it. This instruction tries to emphasize the culture of transparency and also tries to make all transactions and all producers (upstream and downstream) trade in the context of the commodity exchange. In this instruction, the supply side responds; National Industries Company Petrochemical and is in charge of demand management; The Deputy for Industrial Affairs and the Supervisor of the Consumers and Producers Protection Organization

Monitor trading at three levels

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Soodabeh Forghani_Product Market Monitoring Expert Petrochemical

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