What Factors Affect the Price of Spunbond?
In Iran, it has often been observed that the dollar price decreases while the price of spunbond increases, and vice versa, where the price of spunbond decreases but the currency price rises. Why does this happen?
The price of spunbond primarily depends on the price of PP (polypropylene) materials in the commodity exchange. Therefore, supply and demand in Iran’s commodity exchange are the most important factors determining the price of spunbond. The minimum price for textile polypropylene is set in the commodity exchange, but supply and demand remain the main price drivers. Usually, in Iran, transactions do not happen at the minimum price set by the exchange. The main price setters are suppliers, i.e., petrochemical companies, who control prices through supply reductions and various supply policies.
Some petrochemical companies producing polypropylene in Iran include Jam Petrochemical, Marun Petrochemical, Shazand Petrochemical, among others. Although government policies regarding pricing of raw materials and base prices in the exchange affect the supply of petrochemical materials, the pricing strategies of petrochemical companies have the greatest impact on the final price of spunbond.
An essential point affecting spunbond prices, which repeats annually in different seasons, is the price of polypropylene petrochemical materials during winter. Due to higher production costs and fuel consumption in this season, spunbond prices are generally higher.
In Iran, the supply and demand cycle in the exchange typically starts on Monday, with prices of petrochemical materials including polypropylene set by the end of the day, hence spunbond prices are determined on the following day, Tuesday.
After the effect of supply and demand on raw material prices, the next important factor is the currency price. Globally, spunbond is priced at about 1.7 USD, so if global raw material prices decrease, spunbond prices in Iran also fall. However, due to high inflation in Iran, currency price fluctuations affect spunbond prices far more than global polypropylene or spunbond prices.
Also read:
What is a Bag Shop?
Price and Purchase of Promotional Handbags
Disposable Towel Purchase
Filler Fibers
What are Natural Fibers?
What is Polypropylene?
There are several factors influencing spunbond fabric prices, analyzed as follows:
- Production Costs:
- Costs of raw materials, energy, and labor directly affect spunbond fabric production expenses and final pricing.
- Fabric Quality:
- Higher-quality spunbond fabric may cost more, directly impacting the final price.
- Inflation Rate:
- Changes in inflation and overall market price rises can increase spunbond prices.
- Supply and Demand:
- The production volume and market demand are fundamental factors affecting spunbond pricing, with fluctuations impacting price levels.
Yazdlaie Product Price List for Ordibehesht 1403
Click here. 👆👆