Iran bans exports of polymers and petrochemicals

06-Nov-12

Iran’s Consumers and Producers Protecting Organization has announced that exports of 50 various industrial and petrochemical goods as well as foodstuff has been forbidden to support national production, according to Islamic Republic News Agency (IRNA). No further explanation for the blanket ban was given. IRNA said all polymeric products are included in the ban- PE, PP, PVC, PS, PET, ABS, styrene monomer and other petrochemicals are on the banned list. The list is part of the 50 industrial and agricultural products restricted for export sales. The restriction also included wheat, flour, sugar, vegetable oil, soybean, aluminum, scrap iron, copper wire, car tires and steel products, IRNA said. As per Platts, the news came as the US and Europe stepped up sanctions against Iran in an attempt to curb its controversial nuclear program. The West accuses the Islamic Republic of trying to build nuclear weapons, but Tehran says its nuclear program is aimed solely at generating electricity. The export restriction also came on the heels of the severe volatility in the Iranian rial against the US dollar. The rial's dramatic fall since the start of the year following the sanctions has made imports more difficult and expensive. Sources said the Iranian government has sent a letter to exporters of Iranian petrochemicals around five days earlier ordering them to withhold shipment of polymers. The ban will not apply to materials that are ready for shipment at Iranian ports, they said, but added that no new deals can be made to export these products, with immediate effect.