Iran’s petrochemical revenues fall by $3B due to oil price fall

Business Materials 16 April 2016 14:48 (UTC +04:00)

Baku, Azerbaijan, Apr. 16

By Fatih Karimov - Trend:

Iran's revenues via petrochemical products' exports have decreased by $2.5-$3 billion per year due to oil price fall, Fariborz Karimaei, deputy head of Iran's Petrochemical Employers Association, said.

Even petrochemical products which are produced with natural gas feedstock have witnessed significant price fall during the last 1.5 years, Karimaei said, Mehr news agency reported April 16.

The price per ton of methanol has decreased from $400 to $180, meanwhile the urea price has decreased by $150 to $200 per ton, the Iranian official said.

The price of polymer products also has witnessed a 50 percent fall, Karimaei further said.

Iran currently produces $20 billion worth of petrochemicals per year, meanwhile the oil ministry plans to double the figure by 2021.

Petrochemical plants in Iran had to work below the actual production capacity due to the shortage of natural gas as feedstock, old production units and the sanctions, which has caused a decline in exports.

The country's petrochemical output capacity currently stands at 61 million tons. The Islamic Republic hopes to bring this capacity to 120 million tons by 2020 and 180 million tons by 2025.

Iran's petrochemical exports reached 19 million tons, worth $9.5 billion in the last fiscal year (ended March 20).

Over 46 million tons of petrochemical products were produced in the country in last fiscal year, 2.5 million tons more year on year.