The local PET market has stabilized as the supply has increased compared to last year, secretary general of the Association of Petrochemical Employers Unions said.
Speaking about polyethylene terephthalate (PET), which is one of the products in the petrochemical industry downstream sector, Ahmad Mahdavi-Abhari said: “Shahid Tondgouyan Petrochemical Complex, the only PET company in Iran produces large volumes and the market is now stable,” IRNA reported.
Earlier he had said there is no concern about feedstock as production is high enough and can meet the market's need in summer when demand soars.
Production of PET, a form of polyester used to manufacture plastic bottles, has surged by 10% in the last three months.
Annual output of Shahid Tondgouyan Complex, including PET and purified terephthalic acid, is in the region of 1.6 million tons.
PET, best known as clear plastic, is nothing but a plastic resin and the most common type of polyester. It is the most widely recycled plastic in the world. PET packaging is used extensively across industries because of its convenient usage.
Key drivers behind the growth of such packaging material are the cooking oil, beverages, healthcare and personal care industries. These sectors extensively use packaging for end products like soft drinks, foods, cosmetics and medicine in the form of lotions, liquids, foams and capsules.
Mahdavi-Abhari expressed doubts over reports that say there is a 20-million-ton annual capacity in the downstream sector. “To get authentic data further studies are needed”.
“The Oil Ministry is not in charge of the downstream sector. That is the function of the Ministry of Industries, Mining and Trade. They should be able to provide more accurate figures.”
In the upstream sector, basic petrochemicals are manufactured that are later used to produce goods that are referred to as the downstream sector.
Shifting Gears
Development of petrochemical industries is among the priorities of the Oil Ministry, and the National Petrochemical Company is working on a master plan to expand the downstream sector.
Over the past years Iran’s petrochemical industry has focused on the upstream sector. That is now changing and the new policy is to develop downstream projects.
Currently, 55 petrochemical plants are operating in Mahshahr, Assaluyeh and other areas with a capacity of 65 million tons per year.
Regarding the petrochemical export, Mahdavi-Abhari said it continues, but did not provide details.
In the last fiscal year Iranian companies generated $14.1 billion from petrochemical export. Official data has it that petrochemicals account for 32% of Iran’s non-oil exports.
Petrochemical is Iran's most important industry after oil and gas. NPC hopes to lift output capacity to 120 million tons per annum by 2022.
The petrochemical industry has played a key role in domestic economic growth as it creates value-added and curbs the sale of oil and gas on which the economy has been dependent for decades.
With abundant hydrocarbon reserves and new private sector investments, Iran is working hard to broaden the scale and scope of this industry.
