Petrochem Exports Exceed 20m Tons in Fiscal 2016-1

Iran exported over 20 million tons of petrochemical and polymer products in the previous fiscal year that ended on March 20, setting a new record in outbound shipments, said the secretary-general of Iran's Association of Petrochemical Industry Corporation.

“In fiscal 2016-17, Iran produced 50.61 million tons of petrochemicals, of which 20.3 million tons were exported,” Ahmad Mahdavi was quoted as saying by ISNA on Friday.

Nominal production capacity reached 61.9 million tons last year, Mahdavi said, adding that output capacity rose by 8% year-on-year. Actual output also increased by 9% year-on-year to 50.6 million tons.

Tehran earned $9.55 billion in revenues from petrochemical exports last year, Mahdavi said. The petrochemical consignments went mostly to Asia, Europe and South America.

He added that petrochemical exports increased by 8% compared to the previous year, but exports took a hit in value because of the slump in the global oil market.

Price of petrochemicals is closely associated with crude oil prices which fell to their lowest in over a decade in early 2016. International benchmark Brent is trading more than 50% below its peak levels of more than $110 per barrel in mid-2014.

According to the official, Iran’s nominal output capacity was 56.7 million tons in fiscal 2013-14 and actual production reached 40.4 million tons, of which 12.5 million tons, worth $9.8 billion, were exported.

In the two following fiscals, nominal petrochemical production capacity was at 57.1 million tons and 57.9 million tons, with actual output at 44.3 million tons and 46.4 million tons respectively.

Mahdavi added that petrochemicals made up almost 22% of Iran's total exports last year.

Tehran says it hopes to attract more than $70 billion in its petrochemical sector and boost annual production to 130 million tons in five years.