Polymer exports earned $3.3 billion in the last fiscal year (ended March 20, 2022), accounting for 7% of Iran’s non-oil export revenues, Barmak Qanbarpour, a member of the board of directors of Iran National Plastic and Polymer Industries Association said.
“The figure experienced a 32% growth compared to that of 2020 when it barely stood at $2.5 billion,” the Oil Ministry’s news service also quoted him as saying.
The uptrend in sales was not only because of the rise in petrochemical prices, but was also triggered by the removal of global restrictions related to the Covid-19 pandemic, he added.
The official announced that Iran’s non-oil export revenues hit $48 billion in 2021 and polymer industry accounted for 7% of the turnover.
According to Qanbarpour, the polymer sector comprises 3.5 million tons of the total petrochemical production capacity that stands at 75 million tons per annum.
“The installed capacity for polymer products is more than 20 million tons, of which only 5 million tons are produced per year and between 2.5 million tons and 3.3 million tons are sold in international markets,” he said.
In 2020, polymer exports declined and reached $2.5 billion, which figure approached $3.3 billion last year.
According to the official, Iran’s polymer industry accounts for 1.5% of GDP and 3.6% of employment.
Major Obstacle
Cost is a major obstacle to the export of polymer products. Domestic manufacturers supply their raw materials at high prices, which deprive them of a competitive advantage in export markets.
The lowest prices are found in Southeast Asia and the highest exports of raw materials also happen in that region. Competitors in China get raw materials at lower prices and take away the competitive edge of Iranian producers.
Iran ranks first in the export of polymer products to Armenia, second to the Republic of Azerbaijan and sixth to Pakistan.
Given the comparative advantage of the energy sector, polymer and plastic industries have witnessed a progressive trend in the past two decades.
Qanbarpour is also the secretary of the Second National Conference on Plastic Exports Development in Iran to be held in Isfahan on July 26.
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, identification of investment opportunities and how the country's economic policies influence 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, in the automotive industry.
Global Market
As a result, the global polymer revenues are expected to increase from $533 billion in 2022 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. 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 demand for polymers.
During the Covid-19 crisis, automotive plants across the world faced government restrictions. This drastically reduced demand for various raw materials. However, the demand for polymers and plastics in food processing, packaging, pharmaceutical and personal care sectors is growing again.
Qanbarpour noted that 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 said it has a roadmap for getting a bigger share of the international polymer and plastic markets.
“To increase exports, we suggest a revision of the pricing of polymer products by the government. In addition, producers have to pay more attention to design, printing and packaging, and make use of different ways of promoting sales,” he said.
