Iran Jacks up Petrochemical Yield to Meet Europe Demand
Published By : 23 Jul 2015 | Published By : QYRESEARCH
Iran has begun pushing up petrochemicals production due to renewed purchasing interest from Europe, which is its key market a week after the landmark nuclear deal was closed after protracted negotiations.
As stated by a source close to the petrochemical producer, there have been increasing number of enquiries from Europe. Buyers, who earlier stayed away from associating with Iran are showing interest to work with them.
Iran was a major supplier of petrochemicals to Europe, before suspicions grew about development of nuclear weapons in the Middle Eastern country. Europe is the natural market for Iran because of geographical proximity.
On July 14, Iran along with six super powers of the world, namely France, the U.S., the U.K., China, France, Russia, and Germany agreed to dissolve a 12 year old diplomatic stand-off. As per the agreement, the Iran will have long term restrictions for nuclear program and in exchange will return will be free of financial sanctions imposed on the country over a period of time.
The long awaited nuclear deal was signed days before Eid-ul-Fitr holiday, which marks the end of the holy month of Ramadan on July 17th.
As stated by a Tehran based polymer source, the country did not have Eid-ul-Fitr celebrations because of strong scrutiny from everyone.
Iran petrochemicals suppliers are aiming Germany, France, and Italy, as stated by industry sources.
Earlier in the week, a high-level German business delegation, which was led by vice chancellor Sigmar Gabriel, made a visit to Tehran for the discussion of trade opportunities.
As stated by European petrochemical industry sources, it expects polymers to be transported from Iran into Europe in a few months. However, it will take time for import volumes to return to levels that existed in the past.