Oil Products, Minerals Boost EPI

The average EPI during the eight months to Nov. 21 witnessed a 16.7% growth year-on-year, IRNA reported.

EPI is primarily affected by two factors: foreign exchange rates and global commodity prices.

The index is calculated for the prices of one or a basket of commodities in international trading using, ideally, FOB export prices, according to Financial Tribune.

The dollar and euro grew by 2.5% and 1.2% respectively in Aban and 9.2% and 18.19% during the eight months of the current fiscal year, reaching 49,930 and 48,600 rials respectively.

EPI for petroleum-based and mineral products had the highest YOY rise, recording a 353% and 40.9% growth respectively. These products include liquefied propane, liquefied butane, cement, bitumen, copper concentrate, copper cathode, paraffin wax, engine oil, high-density polyethylene, zinc ingot, tiles and ceramics, ammonia, aluminum ingot and calcium carbonate powder.

Other products rising in value month-on-month include pistachio, urea, tomato paste, tractor, hot-rolled steel, hand-woven wool carpet, yoghurt, evaporative coolers, raisin, almond, biscuits, potato chips, cake, ice cream, plastic hose, frozen fish and white chocolate.

Cement, fertilizer, hand-woven carpet, dates, yogurt, biscuit, wafer, saffron, radiator, tractor, synthetic leather sandal, frozen fish, tomato paste, cake, tiles, ceramics, cleansing powders and liquids, and machine-made carpets were non-oil products that registered the highest rise in their month-on-month EPI.

EPI for methanol, hydrogenated vegetable oils and iron beams declined month-on-month.

A closer look at the figures reveals that EPI for petrochemical products saw an increase of 6.7%.

According to the report, EPI for chemical and their downstream products as well as base metals and their downstream products witnessed a considerable year-on-year growth, rising 31.3% and 32.4% respectively.

EPI started the fiscal 2017-18 at 241 points.