Possibility of stagflation in the free market of raw materials!

According to INPIA, for two consecutive weeks in the stock market, the base price of petrochemical products was decreasing. This led us to expect the free market to reduce its prices following the stock market, but the upward trend in prices was not in line with any of the domestic and international economic zones. According to Seyed Javad Mousavi, a stock exchange expert, there was only one major reason for the market to increase its price, unlike the stock exchange, and that was due to the decrease in demand on the stock exchange. An examination of the stock market situation shows that in recent days, demand has been visibly low. Perhaps this can be interpreted as the fact that intermediaries have shown less desire to buy materials from the stock exchange and more materials have reached the real buyers. As a result, intermediaries who bought less material have emptied their warehouses and increased market prices. In addition to this factor, there is another issue that has been further caused, and that is the news of the arrest of intermediaries and brokers, which has been accompanied by a new wave in recent days. This news caused some traders to temporarily stop their sales so as not to get into trouble. This factor also caused the material available in the market to decrease and therefore the price to increase. Therefore, if the market does not calm down in the coming days and the new stock market prices do not affect the free market, it is very likely that we will see an “inflationary recession” in the market. It remains to be seen what the reaction of stock market managers, petrochemicals and the government will be to this issue, and what solutions will be found for the country’s plastics industry producers.

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