Baku, Azerbaijan, Dec. 26
By Fatih Karimov – Trend:
The removal of the nuclear related sanctions against Iran in 2016 raised expectations that the Islamic Republic will give a boost to urea fertilizer exports.
Under the sanctions, Iranian urea manufacturers have been primarily selling it to India, and at a discount to the Persian Gulf states.
It was expected that foreign fertilizer traders, who were deprived from Iran market, take advantage of the sanctions’ removal to involve the business opportunities in this market.
However, the latest official statistics indicate that Iran’s urea production during the current fiscal year (started March 20), has registered a slight rise, meanwhile the exports have even witnessed considerable fall.
Iran’s urea export in the first seven months of the current fiscal year (March 20-Oct. 20) accounted to $400 million, 24 percent less year-on-year.
The country’s urea output also stood at 3.06 million tons in the same span of time, 5.1 percent more compared to the same period of the preceding year, according to the country’s industry ministry’s data.
Meanwhile Iran’s urea production was 380,800 tons in the seventh Iranian calendar month, 15 percent less month-on-month.
Iranian officials say that the decline is due to overhaul operations carried out in the petrochemical units, producing urea fertilizer.
Iran’s urea production capacity is planed to reach 14.7 million tons by 2022, under the sixth five-year economic development plan from the current level of 5 million tons.
Nine petrochemical plants are expected to be launched during the four year periods in this regard.
Urea is mainly used as a fertilizer in agriculture and also used as raw material for other industrial purposes.
Iran’s ammonia output also stood at 2.4 million tons in the first seven months of the current fiscal year, 7.6 percent more year-on-year.
The country’s annual ammonia production capacity stands at 4.5 million tons.
Globally, approximately 88 percent (as of 2014) of ammonia is used as fertilizers either as its salts, solutions or anhydrously.