"Iran Petrochemicals Report Q1 2015" Published

From: Fast Market Research, Inc.
Published: Thu Dec 11 2014


The surge in capacity expected in 2015 will not be sustainable if feedstock supply is not forthcoming and markets do not absorb output. While the plants may nominally come on stream, BMI's latest Iran Petrochemicals Report states that operation rates are likely to be low and plants will be operating at a loss unless Iranian producers can pass on the full costs of production onto consumers in export markets. To operate at reasonable levels of capacity utilisation, olefins output would have to increase by a third and polymers by a third, but the demand may not exist and may not have existed even without the sanctions regime.

Full Report Details at
- http://www.fastmr.com/prod/912331_iran_petrochemicals_report_q1_2015.aspx?afid=302

Iran is portraying growth in exports and output as a sign that the industry is on the road to recovery. Although diplomatic rehabilitation and improved external markets have boosted exports, production capacity utilisation is still low. With the prospect of new plants coming onstream in 2015, the Iranian petrochemicals industry will continue to face poor performance.

By end-2014, the National Iranian Petrochemical Company (NIPC) claimed that Iran represented 21% of the Middle East's petrochemicals market, a 25% share in the production of petrochemicals in the region and was the second largest exporter in the Arabian Gulf with exports largely destined for Asia. Growth will be led by exports.

* Official figures show Iran's petrochemical output stood at 22.8mn tonnes during the six-month period, which puts the country on course for 10% growth in output compared to the 40mn tonnes reported in 2013/14. The lower rate of growth in value compared to volume growth suggests that Iranian petrochemicals production is still dominated by low value basic chemical products. With capacity utilisation likely to average around 50%, significant growth is required for Iranian producers to approach a level regarded as commercially viable.
* Petrochemical exports from Iran increased 5% y-o-y in the first half of the current Iranian year (March 21 to September 22)....

The Iran Petrochemicals Report has been researched at source, and features Business Monitor International (BMI)'s market assessment and independent forecasts for key petrochemicals sub-sectors. The report also analyses the impact of regulatory changes, recent developments and the background macroeconomic outlook and features competitive landscapes comparing companies by products and services, sales, market share, investments, projects, partners and expansion strategies.

BMI's Iran Petrochemicals Report provides industry professionals and strategists, sector analysts, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Iranian petrochemicals industry.

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