Iran exported more than $1 billion worth of polymer products in the last fiscal year (ended March 20, 2021), the head of Export Commission of the National Plastic and Polymer Industries Association said.
“The country earned $1.031 billion in revenues from selling various polymer products to foreign countries last year,” IRNA quoted Masoud Jamali as saying.
Iran ranks first in the export of polymer products to Armenia, second to the Republic of Azerbaijan and sixth to Pakistan, he added.
Five million tons of polymers and plastics are produced in Iran annually, half of which is exported.
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 getting a bigger share of the international polymer and plastic market.
One way to increase export volumes and raise revenues is by signing agreements with other countries. In recent years, a preferential agreement has been signed with the Eurasian Economic Union.
“While EEU imports about $4.5 billion worth of polymer products annually, Iranian sales to the region is around $600 million, which can increase if obstacles are removed,” Jamali said.
Export Problems
Speaking about export problems that roiled the country because of sanctions, he called on officials to take effective steps in line with resolving problems facing exporters of polymer products to other countries.
A glance at permits issued by the Ministry of Industries, Mining and Trade suggests polymer production capacity is north of 20 million tons but hardly 25% of the capacity are in use.
After the US reimposed economic sanctions, companies cut production and some downed shutters.
The US imposed an economic blockade on Iran in August 2018 by targeting key industrial sectors like oil, banking and insurance. In the May of that year, the twice-impeached 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.
US President Joe Biden is expected to restore the accord and officials in Tehran hope he will ease restrictions on petroleum export.
Officials have expressed hope that if the barriers are removed, production can triple and boost revenues to $4.5 billion a year.
Given the comparative advantage of the energy sector, polymer and plastic industries have seen a progressive trend in the past two decades.
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. And with the rising demand for electric vehicles, the polymer market is expected to 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 demand for various raw materials.
However, the demand for polymers and plastics in food processing, packaging, pharmaceutical and personal care sectors is still strong.
