Prices of petrochemical products down by 30% in Iran
Baku, Azerbaijan, Feb. 13
By Fatih Karimov - Trend:
Prices of petrochemical products have decreased by 30 percent in Iran, said Ahmad Mahdavi, secretary of the Iranian petrochemical industries union.
Mahdavi said prices of petrochemical products have decreased following to a plunge in oil prices, Iran's Fars news agency reported on Feb. 13.
Prices of products which are produced from liquid feedstock, especially polymer products, have decreased more than other products, he noted.
However, manufacturers who use petrochemicals as raw material have not reduced prices of their end products, he said.
Petrochemicals are used vastly in automotive, packaging, and detergent industries.
The huge share of petrochemical industry in Iran's $156-billion worth capital market (1 USD/31,000 rials, based on open market exchange rate) demonstrates the importance of petrochemical industry in Iran's economy.
During the current year Iranian calendar year (started on March 21), the petrochemical units faced an index drop at the capital market, due to uncertainty in getting the crude oil and gas price set for them by the government.
Iranian government was supposed to revise the oil and gas prices for petrochemical units for several months already, but no decision has been made as of yet. This imposes a big threat on Iran's petrochemical sector, as the global oil price has been driven down sharply.