Iran petrochemicals export plunging in value & volume


Despite a relative increase in petrochemical products export since 2013, the figures are expected to decrease both in volume and value during the current year.
According to a report, released by Shana on Sep.14, Iran is expected to export 17.5 million metric tons (MT) of petrochemical products during the current fiscal year, which will end on March 20, 2016.
Before The imposition of sanctions, Iran was exporting 21.226 MT of petrochemical exports, but the figure decreased to 14.492 MT in a fiscal year to March 2013. However, Iran and P 5+1 (the US, UK, France, Russia, China + Germany) reached an interim nuclear deal in November 2013, which led to elimination of petrochemical-related sanctions on Iran. Iran's petrochemicals export reached 18.8 MT in the last fiscal year, ended on March 20, 2015, increasing by 28.35 percent in volume and 31.79 percent in value year-to-year.
Petrochemicals production (MT)
Petrochemical export (MT)
Petrochemical export ($ Billion)
2011
42.7
21.226
15.042
2012
41
12.492
10.097
2013
40
14.647
10.806
2014
44
18.8
14.241
2015
50.1
17.5
11
Iran's petrochemical production capacity is about 60 MT annually, while the figure would reach 62.6 MT. Therefore, the huge gap between production capacity and actual output remains unchanged.
The main reason is remaining key sanctions over Iran, especially money transactions thorough SWIF, insurance and banking sanctions, have pushed Iran's petrochemicals export down.
The second problem is remaining feedstock shortage in Iran. Iran still faces gas shortage in winter and ethane supplying to petrochemical complexes. Iranian petrochemical plants uses 37 million cubic meters of natural gas per day, while Iran could deliver only 2.8 MT of ethane to plants during last year totally. The country planned to increase this volume to 4.2 MT in current fiscal year.
The other problem is the glut in some key petrochemical products in international markets, for instance, the Asian price of a key petrochemical material, propylene, slipped in early August. The East Asian spot price of the main feedstock for polypropylene stood at around $880 a ton, down 16 percent on July 30 compared to May.

Comments

Post a Comment

Popular posts from this blog

Iran in fighting with Caspian Sea pollution

Image
Iran, with its largest population on the Caspian Sea shore among other littoral countries, is keen to save the world's biggest inland body of water from pollution and has initiated a "Comprehensive plan to reduce pollution" plan. The Fars News Agency quoted the head of Department of Environment Mohammad-Javad Mohammadzadeh as saying that the plan targets preventing entry of pollutants, including household waste, especially in Gorgan and Mazandaran provinces, to the Caspian. Meanwhile, Abdolreza Karbasi, the deputy head of Environmental Protection of Iran alarmed about the ecological state of beaches, releasing warning to swimmers in the Caspian Sea. "The pollution at some parts of the sea has exceeded the authorized limit by 100 times," he said. Iranian coastal population is around 6 million people, including residents in the regions en route the rivers that flow to the Caspian, whose household waste waters enter the sea without passing through wa
Read more

U.S. Sanctions Slow Iran’s Electricity Generation And Trading

Image
By  Dalga Khatinoglu The peak electricity demand in Iran and its neighbor clients Afghanistan and Iraq happens in warm months, but during this period last year Islamic Republic’s exports plunged due to high demand at home. Its electricity imports from Armenia and especially Turkmenistan have been declining dramatically since September. This is possibly due to U.S. banking sanctions, which restrict Iran’s ability to pay its bills. During international sanctions prior to the nuclear deal (2011-2016), Iran was also unable to pay for Turkmen gas and electricity imports, running up $2bn in debts. Iran’s electricity trade during last and the previous fiscal years (GWh/month): ​ Power Generation Iran increased nominal power generation capacity by 2.3% last year; less than half of projected growth, but its actual electricity generation increased by only 1% to 312 TWh, a fifth of projected plan. The growth rate for actual power generation is far below nominal capacity, because
Read more

Iran Launches Uncompleted Gas Project Citing Suspiciously High Production

Iran’s Oil Ministry officially opened four new phases of the South Pars gas field March 17, citing production and investment figures that don’t add up. The nominal production capacity of the newly opened phases 13, 22, 23 and 24 is 113 million cubic meters per day (mcm/d), but currently they are producing about half of that. The processing units of these phases are also operating at half capacity most probably due to Iran’s technical limitations compounded by sanctions. Phase 13 is projected to produce 56 mcm of natural gas and 75,000 barrels of gas condensate (ultra-light oil) per day, when it becomes fully operational. The capacity of phases 22-24 are together equal to phase 13. The Oil Ministry said all phases will be operating at full capacity within one year. According to Oil Ministry’s statement, some $10 billion were invested in the mentioned four phases, but ministry officials put the figure at $11 billion during the inauguration ceremony, which President Hassan Rouhani
Read more