IME to Set Petrochem, Feedstock Prices
Economy, Business And Markets

IME to Set Petrochem, Feedstock Prices

Iranian lawmakers passed a bill during their Wednesday public session based on which the Iran Mercantile Exchange (IME) would be the reference for setting petrochemical prices, reported ISNA on Monday.
With regard to the long process to set the prices for the feedstock for petrochemical units, the parliament decided that the IME be the reference for price discovery so that price setting would be more transparent, said Mohammad Bayatian, lawmaker and a member of the Parliament's industries committee.
Based on the new decision, the buyers of petrochemical products from the IME would be granted government subsidies. The subsidy will be offered to the producers to shield them against market fluctuations, added Bayatian.
Earlier this year, the administration published a special package designed to pull the economy out of recession without increasing inflation. According to the package, the price of commodities and goods to be offered at commodity market and energy bourse should only be set within the IME and the stock exchange (Tehran Stock Exchange).  
The government and the parliament seem to have joined hands to resolve this issue, a trend not witnessed much during the former president Mahmoud Ahmadinejad's tenure. This has brought hope to the market and now analysts expect much better days for the commodity market. The experts say the move would reduce the administration's expenditures, would make it possible for the government to more closely monitor the prices and balance the supply and demand in a more efficient manner, and would also increase trade transparency.
The quality of domestic gasoline as well as feedstock prices are the bones of contention and the main reason behind the months-long absence of refineries and petrochemical facilities from the stock market. The refineries' ticker symbols were for months closed at the Tehran Stock Exchange (TSE) and the IME, so they were unable to officially announce their gains and losses. The absence in commodity markets led to a widespread dissatisfaction among the shareholders.


Short URL : http://goo.gl/fLNOyn

You can also read ...

On Sunday, the rial traded at 46,130 to the dollar, up 1.8%. 
With its foreign exchange package now in full swing, the...
Iran-Greece Trade Tops $1.5 Billion
Iran exported more than €1.26 billion worth of goods to Greece...
Telegram Raises $850m From Investors Before Planned ICO
The chat app company Telegram filed documents with the US...
Iran Decision on FATF Agenda
The Financial Action Task Force–the global anti-money...
Ban on Contraband Cellphones in Iran Reaches LG
Following the government’s belated policy of curbing cellphone...
Intel Hit With  32 Lawsuits
Intel has revealed that the company is facing at least 32...
Iran and Turkey finalized the $1.4 billion currency swap agreement.
Iran has signed memoranda of understanding and protocols...
Facebook has to delete all data it has gathered on Belgian citizens.
A Belgian court threatened Facebook (FB.O) on Friday with a...