The fragile calm of the polymer market

Report Inpia quoting World Economy , Commodity Exchange trading shows that a new commodity has been added to the category of attractive trading grades, of which 0075 film-style polyethylene can be considered. While the base prices of different grades are PVC and Polystyrenes ‘s set on an upward trajectory and recorded a different trend with […]

Report Inpia quoting World Economy , Commodity Exchange trading shows that a new commodity has been added to the category of attractive trading grades, of which 0075 film-style polyethylene can be considered. While the base prices of different grades are PVC and Polystyrenes ‘s set on an upward trajectory and recorded a different trend with a small increase.

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By examining and monitoring the price conditions of basic products during the past weeks, we see that in consecutive weeks, products have been accompanied by price declines, and after several periods of price reduction, it may have reached a price floor and it seems that there is no possibility of significant price reductions. For this reason, it will take a relatively stable path; In addition, products such as PVC and Polystyrene ‘s were accompanied by a limited increase, indicating price sparks this week and the expectation of price increases for other commodities in the coming weeks.

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However, we expect the volume of transactions to increase during this week and next week, breaking the downward trend that took place last week due to the holidays (less than 40,000 tons) and again reaching the limit of 50,000 tons.

Domestic market

The free market for polymers has been facing declining prices for some time, although the continued decline in commodity prices will be a compelling reason for declining rates in the open market. However, the relative decline in demand during Ramadan, the existence of excess supply over demand, the relative decline in production in downstream industries, the possibility of further decline in prices in recent weeks and lower global prices due to falling crude oil prices and liquid feed and raw materials Petrochemicals were the ones that led to lower prices in the open market and commodity exchanges.

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However, attractive grades in commodity exchanges such as chemical and textile polypropylenes and even heavy extrusion grades such as EX3 are facing price inflammation and have high prices. These conditions must be sought in the realities of the commodity exchange, because the inflammation of the commodity exchange has finally been transferred to the domestic market, or any superiority of demand over supply will still be manifested in the commodity exchange.

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It seems that this trend, ie the relative weakness of trading volume and the superiority of supply over demand in the coming days, will continue and this trend will continue until the price phase in the commodity exchange changes. This trend will continue if base prices do not enter a stable phase.

۵% decrease in the value of polymer exports in April

In recent days, a meeting of the Export Commission of the National Association of Plastics and Polymer was held in the building of the Iran Chamber. In this meeting, while pointing out the obstacles and problems that exist in the way of export, statistics on the amount of exports of products downstream of the petrochemical industry were reported.

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Behnaz Kamousi, representative of the Trade Development Organization, Simin Kimiaei, representative of the Ministry of Industry, Mines and Trade, and Ruhollah Vahid Kiani, senior expert of the downstream industry development office of the National Iranian Petrochemical Company, attended the meeting. The head of the Chemical and Petrochemical Industries Group of the Trade and Development Organization of Iran also said at the meeting: “According to the statistics of the Trade Development Organization, the export of polymer products has increased by 48% in April this year.”

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Behnaz Kamousi added: “Intermediate products are among the petrochemical raw materials in terms of appearance and have added value for the domestic producer in terms of process.” He further clarified about the export statistics in April of this year: The export value of polymer raw materials $ 285 million, down 5% in value.

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The volume of exports was 417 tons, which shows a decrease of 8% in terms of volume. He added: “Five percent of the export facility rate subsidy was paid to the leading export units with infrastructure.” Saeed Turkman, a member of the board of directors of the National Plastics and Polymer Association of Iran, said at the meeting of the association’s export commission: “There are 8,000 plastic industry units in the country, 500 of which are active in the field of export.

He added: “5% subsidy on export facility rates has been paid to leading export units with infrastructure, but in a dispersed and integrated industrial units, they were better able to benefit from it.” The regional prices of polymer raw materials in the first two months of this year were reasonable and this has calmed the domestic market.

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“Renovation loans are to be distributed in the coming days, and there are concerns for some units in the provinces that they will not be able to absorb these facilities,” Turkman said. The head of the Export Commission added: the time of distribution of these facilities will be informed through the information association and the units must refer to the provincial industry, mining and trade organization to receive it.

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The head of the Petrochemical and Plastics Department of the Ministry of Industry, Mines and Trade also said in the continuation of the meeting: “Convergence and consensus of industrial organizations has led to mobility in the Office of Complementary Industries and petrochemical companies were required to respect the interests of producers.”