Convergence of Iran Petchem Holdings Boosts Exports

Convergence of Iran Petchem Holdings Boosts Exports
(Saturday, May 17, 2025) 11:13

TEHRAN (NIPNA) – The advisor to the CEO of the Persian Gulf Petrochemical Industries Company (PGPIC) said on Saturday that sustainable petrochemical exports from Iran depend on the convergence and collaboration of petrochemical holdings, alongside support from the National Petrochemical Company (NPC).

Speaking to NIPNA, Mojtaba Khosrowtaj emphasized that a stable export strategy must begin with aligning Iran’s production capacities with international market demands.

“A large share of Iran’s petrochemical products serve as feedstock for industrial units abroad, which require consistent and scheduled deliveries,” he said.

Khosrowtaj warned that sudden shifts in export policies, especially to meet domestic needs, undermine foreign buyers’ trust. “Long-term investments and increased production capacity are essential to ensure reliable supply and diversify market outreach,” he added.

He stressed the need to transition from ad-hoc, spot sales toward structured, long-term contracts. “End-users, particularly manufacturing units, favor predictable, long-term agreements,” he said. Disruptions, he noted, not only erode trust but damage the reputation of Iranian suppliers.

Brand Reputation Rooted in Performance, Not Directives

On the topic of branding, Khosrowtaj said creating a trusted brand in the petrochemical industry hinges on reliability in quality, timely delivery, and transparent customer engagement. “Brand loyalty emerges when the buyer consistently experiences dependable quality and service,” he said.

He lamented the loss of a unified national brand identity following the privatization of Iran’s petrochemical complexes. “Despite high product quality and the use of advanced technology, the lack of a consistent brand weakens our global position,” he said.

Infrastructure Gaps Hinder Market Expansion

Khosrowtaj underscored the importance of penetrating emerging markets such as Africa, Latin America, and East Asia. However, he said this requires significant structural groundwork. “Without proper logistical and trade infrastructure, entry into new markets is neither feasible nor sustainable,” he noted.

He cited Iran’s lack of direct flights and maritime access to African markets as a major barrier, contrasting it with Turkey’s extensive presence via over 750 flights to the continent. “Iran Shipping Lines cannot currently dock in key African ports due to sanctions, which limits our reach,” he said.

Trade and Financial Barriers Limit Competitiveness

The advisor also pointed to high tariffs and limited financial instruments as constraints on Iran’s exporters. “Competitors like Turkey benefit from preferential trade agreements with African countries. Iranian exporters face higher customs duties, undermining their competitiveness,” he explained.

He called for access to tools such as buyer and seller credit and export guarantees, which are either lacking or inefficient in Iran’s current system.

Micro-Distribution Requires On-Site Investment

Addressing market demand in Africa, Khosrowtaj said micro-level distribution infrastructure is essential. “Some African buyers seek as little as 2,000 tonnes of LPG, which is not economically viable to ship directly from Iran,” he said.

As a solution, he proposed sending larger shipments—such as 45,000-tonne cargoes—to regional hubs equipped with storage tanks, enabling phased delivery and local distribution.

Government’s Role Remains Pivotal

Khosrowtaj concluded by calling on the government to spearhead foundational reforms. “Establishing transportation routes, trade agreements, commercial representation, insurance mechanisms, and financial guarantees requires state leadership,” he said. “Despite current constraints, the government’s role in enabling private sector export is irreplaceable.”

 


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