75% of Iran’s Polymer Production Capacity Unused

Iran’s polymer industries have a production capacity of 20 million tons, of which close to 15 million tons (around 75%) are not being used, which has had negative effects on Iran’s export potential, according to the head of board at the National Association of Polymer Industries.
“The issue of end prices is the main obstacle blocking our way to increase exports. Producers purchase the raw material at high prices that lead to higher end prices. This alone has stymied our competitive edge in international markets,” Saeed Torkaman was also quoted as saying by Fars News Agency.
The official noted that Iran’s polymer industry accounts for 1.5% of the country’s annual gross domestic product and generates 3.6% of Iranian jobs.
“The industry accounts for an average of 2.2% of the country’s non-oil exports. We exported $2.5 billion tons of different kinds of polymer products in 2020, which shows a decline compared with the previous year. Downstream polymer industries also exported close to $2.7 billion over the same period,” he added.  
International customers take advantage of economic sanctions imposed on Iran to seek bargains and more discounts, forex repatriation costs more due to the rise in money transfer expenses and changes in Iran’s export destination markets, all of which have led to a decline in polymer export revenues.
“To increase exports, we suggest a revision of the pricing of polymer products by the government. Also, producers have to pay more attention to designs, printing and packaging, and make use of different ways of sales and payments,” Torkaman said.