Five million tons of polymers and plastics are produced in Iran annually half of which is exported generating $1.5 billion, Barmak Qanbarpour, a member of the board of directors of Iran National Plastic and Polymer Industries Association said.
“A glance at permits issued by the Ministry of Industry, Mine and Trade suggests polymer production capacity is north of 20 million tons but hardly 25% of the capacity is in use,” ISNA quoted him as saying.
“After the US imposed new economic sanctions companies cut production and some downed shutters,” Qanbarpour added, hoping that the obstacles would be removed soon and the polymer and plastic industries get back to normalcy.
The US imposed an economic blockade on Iran in August 2018 targeting key industrial sectors like oil, banking and insurance. In the May of that year, then president Donald Trump tore up the landmark 2015 nuclear deal Iran had signed with the six world powers and imposed the so-called “maximum pressure” policy targeting everything that could be hit and harm the Iranian economy.
President Joe Biden is expected to seek the restoration of the accord and officials in Tehran hope he will ease restrictions on petroleum export.
“If the barriers are removed production can triple boosting revenues to $4.5 billion a year.”
Iran currently exports plastic and polymer products to the Middle East and Asia-Pacific region and is planning to enter African markets. The Oil Ministry has said it has a roadmap for a bigger share of the international polymer and plastic market.
Given the comparative advantage of the energy sector, polymer and plastic industries have seen a progressive trend in the past two decades.
Qanbarpour is secretary of the second National Conference on the Economic Outlook for Plastic Industries in Iran to be held virtually May 18-19.
Organized by Iran National Plastic and Polymer Industries Association, the conference will cover topics like the impact of global trends on the national plastic and polymer industries, identifying investment opportunities and analyze the impact of the country's economic policies on the key industry.
Due to the growing need for an efficient economy, heavy materials, such as glass and metals, are being replaced by lighter variants, including polycarbonate (PC), in the auto industry. As a result, the global polymer market is expected to increase from $533 billion in 2019 to $838 billion by 2030.
This is because PC and other polymers have excellent electrical, mechanical, insulating, optical, and chemical properties, as well as a high strength-to-weight ratio and elasticity and corrosion resistance.
Currently, almost 30% of all automotive components are being made from polymers. Moreover, with the rising demand for electric vehicles, the polymer market will grow further, as these materials are used to make lightweight battery packs. As a result of the growing concerns regarding air pollution, the need for lightweight vehicles, preferably electric variants, is driving the demand for polymers.
During the Covid-19 crisis, automotive plants across the world were shut down, in compliance with government mandates. This drastically reduced the demand for various raw materials. However, the demand for polymers and plastics in food processing, packaging, pharmaceutical, and personal care sectors is still strong.
