Price list of polyethylene materials
Theprice of polyethylene materials, including Extrusion Heavy Polyethylene, cross and injection heavy polyethylene, light linear polyethylene and terephthalate polyethylene, like other polymer materials, have faced price increase; the price of polyethylene materials is announced on the stockpile of polymer materials, and the basis of pricingpolyethylene products is the price quoted in the stock exchange. Of course, the supply of materials on the stock exchange is announced by petrochemicals weekly; they state that they can supply a certain amount of polyethylene products and manufacturing companies can, according to their permissions, apply for the materials. The stockbrokers start buying the materials requested by companies. They may not be able to prepare materials for their complex, but the point here is that the price is fixed and will not change, and the price of the polyethylene material will be announced by the petrochemical company.
The prices of polyethylene materials are not in the hands of producers, and they are announced by petrochemicals on the basis of the domestic market conditions and under the influence of foreign exchange fluctuations; manufacturers only add a small percentage on theraw material for production costs and deliver the final product to the market. Increasing prices for polymer materials, and in particular the price of polyethylene, is by petrochemicals, and manufacturers are absolutely blameless. In many cases, due to the rising prices of raw materials, manufacturers are facing problem of procuring raw materials and failing to fulfill their obligations. They are even sometimes threatened by bankruptcy and have to fire some staff and reduce their work hours to manage costs.
The price ofraw material and polyethylene is very important at the community level. Unfortunately, ordinary people blame the manufacturers for this price increase, but manufacturers are only consumers of raw materials and, like ordinary people, are affected by the price of polyethylene. Polyethylene materials are used in many consumable products of everyday use of the community, for example, an increase in mineral water prices due to the increase in the price of polyethylene terephthalate materials used to produce mineral water bottles. This can be generalized to all plastic and polymer products.
Prices of Polyethylene Pipe and Dollar
The price ofpolyethylene pipe and Dollar have a direct relationship, and all polyethylene pipe manufacturers and consumers have understood this, and there is always a question for them: “why?” It is not only the polyethylene products that follow the above rules rather all polymer products are directly related to the exchange rate and the price of the dollar, and prices are changing as a result of fluctuations in the currency, but why? Given the advances and investments made in petrochemicals in the past years and the providing the supply of petrochemicals from domestic and national sources, why is dollar rate regarded as the basis for calculating petrochemical products in the country. We did not find any valid answers to this question.
The basis for the calculation of polymer materials and petrochemical products was changed on Oct. 21, and the price of petrochemical products was calculated based on a new formula. The new formula does not seem so well-organized to the consumers, and this pricing formula will raise questions in the mind.
Price calculation formula for petrochemical products
The average price of the polymer product in the global market is based on Nimai dollar rate that changes weekly minus 5% of the FOB price of the Persian Gulf The result of this new formula was a dramatic rise in prices. In the past weeks, the EX3-grade Amirkabir polyethylene materials had a price increase of 21% and the price of Shazand CRP100B polyethylene materials rose by 29% of the base price. Of course, this was not the final price, and the materials were offered in stock exchange at this price and the free competition ceiling should also be added to them. Thus, in some PET grades, we saw a 62% increase in prices.
The rise in the price of thepolyethylene pipe can cause severe problems for the projects which are against drought and other national projects designed to tackle this serious problem, limiting the access of our people to healthy water, and disrupting wastewater collection systems, and subsequently endangering the health and life of people. It is also not possible to irrigate crops with modern systems, and we will face major problems in managing water resources. With the rise in prices of polymer products and, consequently, the rise in costs of packaging for everyday consumption of all people, inflation can also be seen in the household basket.
Experts believe that petrochemicals should stop engineering of products supply and should observe the supply side, since supply and demand are two sides of one scale and market balance depends on them. Further complementary petrochemical products can neutralize the US sanctions and the current state of the society requires support and development, however, provided that the raw material is supplied from our own resources which is not subject to any sanctions. It is us that have turned dollar into the price leader of petrochemicals and polyethylene raw materials and we have to wait for the trouble and consequences in the industry.
And finally, another question, isn’t the export of raw materials sellable?