Persistence of doubts in petrochemical transactions

According to INPIA, quoting the world of economy, the signals transmitted from the trading statistics of petrochemical products in the commodity exchange until the moment of compiling this report, leave nothing but doubts about the main market players. Exceeding the half price of the currency from its free prices is considered the main culprit of these conditions; Because the commodity exchange base prices were announced following the strong leverage of the average monthly dollar price with increasing rates, in a situation where currency fluctuations in the open market had a decreasing trend and petrochemical raw materials in the open market were lower than the base exchange prices in some grades. Goods were traded. Of course, the foreign exchange market, as a variable affecting many commodity markets, is not very stable. Hence, the outlook for markets affected by currency prices is in a haze of ambiguity and has added to their trading complexity. These days, traders prefer to be cautious and minimize their purchases, either from the open market or from the official trading platform, the Commodity Exchange, so as not to seriously damage their production conditions. Fear of falling free currency prices is, of course, one of the most important variables. Traders expect market stability “World Economy” has a conversation with Ahmad Bayat, an expert in the petrochemical market, to take a closer look at recent developments in the petrochemical market. He said: “Due to the fact that the base prices of petrochemical raw materials were announced this week with an increasing leverage of the half-price of the currency and had an increasing trend, the volume of demand decreased significantly.” Therefore, no outstanding trades have been recorded for polymeric raw materials and it is expected that the amount of trade in various chemical raw materials will not be significant considering the circumstances. Therefore, the need to alleviate these persistent doubts, which disrupt the market trading process for various reasons, is either to move the half-dollar price to lower rates next week or a new decision on the base prices of polymer and chemical products, which is announced every week. To be adopted. The expert also referred to free market transactions and said: “The recent US election has affected the general commodity markets.” In addition, the fall in the exchange rate sent a double signal to the free market of petrochemical raw materials, which resulted in a significant reduction in the price of raw materials in the open market, but the existing actors quickly tried to match trading prices with the dollar price because it is higher than the free price. The currency fluctuated. Of course, this effect was different in different grades, but overall the trading volume experienced a significant decline. Market expectations are based on the continuation of the downward trend in raw material prices, so active applicants in the open market also made the necessary purchases, and the demand for warehouses and depots of raw materials was not seen in the petrochemical market this week. . A week without intense price competition with a noticeable reversal of demand He highlighted the trading skepticism of the petrochemical market players over the past two weeks, adding that a review of meaningful trading data clearly illustrates this skepticism in the process of buying and even selling raw materials. Because in addition to the fact that the volume of supply compared to the same days last year saw a significant decrease, the amount of demand indicates a significant decline, even in some volatile grades, which were previously registered in the commodity exchange during the intense price competition during This week, they traded mostly without competition or with very little competition. This means reversing demand and waiting for it to stabilize in this market and in stimuli in which fluctuations have a direct impact on the price of raw materials in the petrochemical market. Also, the registered demand for some high-demand products such as polyvinyl chloride (PVC) has been registered in very low and strange figures, which is considered as another proof of this claim. The dramatic decline in demand on the physical board of the Commodity Exchange, along with the reduction in price competition, reflects the expectations of market participants for the emergence of stimuli that can end these days full of uncertainty and establish market stability. Regarding the market outlook, Ahmad Bayat said: “This week we saw a hesitant market for petrochemical trade, which was overshadowed by the significant effect of declining demand.” Whether these conditions can be considered as the starting point for a recession depends on a set of variables, the most important of which is the exchange rate. The custom of market transactions has been that when the exchange rate decreases, a recession appears in the market and the volume of transactions is significantly reduced. On the other hand, in addition to reducing the demand for raw materials, the demand for the final product of downstream industries is also accompanied by a significant decline, which is considered a double signal for recession.