Petrochemical revenue from exports and domestic sales in seven years exceeded $110 billion, secretary general of Iran's Association of Petrochemical Industry Corporation (APIC) said.
“Of the total earnings $80 billion was from export $30 billion from the domestic market,” Ahmad Mahdavi was quoted as saying by IRNA.
Published reports say 55 petrochemical companies contributed 40% of the currency traded in the secondary foreign exchange market, known locally as Nima,
Nima is an online platform affiliated to the Central Bank of Iran where exporters sell their overseas currency income and companies buy for importing machinery, equipment and raw materials.
“As petrochemical production rises less crude oil will be exported,” Mahdavi said, adding that local sales have risen by 700,000 tons compared to a year ago.
Unlike other major industries that have not grown over the last two years primarily due to the US economic siege, petrochemical output has risen 30% rise and production is near 80 million tons a year,.
“Almost 90% of the petrochemical firms performed beyond their financial commitments related to repatriating export earnings.”
Based on CBI rules, exporters are required to sell at least half of their export revenue in the secondary market at exchange rates below the (higher) rates in the open market.
For petrochemical companies this obligation is at least 60%. Petrochemical companies in Iran produced 31 million tons in the last fiscal year that ended in March and exports generated $10 billion.
Of the total output, 23 million tons were exported and the balance worth $5 billion was sold to local companies.
