Export of petrochemicals with robust domestic demand banned in Iran

06-Dec-10

From may to October this year, Iran exported 7.4 mln tons of petrochemicals worth US$4 bln mostly to China, Japan, Turkey and the United Arab Emirates. In a move that will result in Iran foresaking revenues in a bid to counter sanctions on gasoline imports, the country has banned exports of petrochemicals for which there is strong domestic demand. Some petrochemical plants in Iran have been converted into refineries this summer, after new US sanctions over its nuclear program made it difficult to import gasoline. It is unclear if all categories of petrochemical products are included in this ban. But in another sign of market tightness, the oil ministry's Shana agency said the ministries of Economy, Finances and Commerce have been required "to prevent the indiscriminate increase in the market price of petrochemical products."