German trading firm ceases petrochemical trade with Iran

08-Oct-10

Hamburg-based trading firm Helm AG has ceased all petrochemicals trade with Iran, following a decision by the company's management last month, as per Platts. "The company management decided there would be no more business with Iran --either directly or indirectly. The decision came into effect immediately and will not be revised in the immediate future," a Helm source said. The decision is expected to affect supply of petrochemical products into Europe including monoethylene glycol, diethylene glycol and polyethylene terephthalate. The announcement followed a final decision from the European Commission in late September over countervailing duties to be imposed on PET originating in Iran, Pakistan and the UAE. Polyethylene is also understood to have been affected by EU sanctions imposed in late July, with downstream consumers refusing to accept material produced in Iran. Punitive measures included a ban on the sale of equipment, technology and services to Iran, hitting activities in refining, liquefied natural gas, exploration and production, according to the Official Journal of the European Union.