36% of Petchem Trades on Commodity Exchanges on Credit in Past Year

36% of Petchem Trades on Commodity Exchanges on Credit in Past Year
(Tuesday, May 20, 2025) 11:13

TEHRAN (NIPNA) – Approximately 36% to 37% of petrochemical product transactions on Iran’s commodity exchanges over the past year were conducted on credit, with an estimated value of 1.31 quadrillion rials ($2.6 billion), a senior official at the National Petrochemical Company (NPC) said on Tuesday.

Mohammad Motaghi, Director of Downstream Industry Development at NPC, told NIPNA that a new executive bylaw has been formulated under Article 48 of Iran’s Seventh Development Plan. The regulation is aimed at allocating unsold and non-export-committed petrochemical products to downstream industries across the value chain.

Motaghi explained that the bylaw, developed in 2025, is designed to secure feedstock for downstream producers. The NPC will oversee its implementation through a newly established secretariat comprising representatives from the Ministry of Industry, Mine and Trade, and the Ministry of Economic Affairs and Finance. Transactions will be facilitated via Iran’s commodity and energy exchanges.

In addition to easing feedstock access, the initiative will benefit new petrochemical projects that require existing feedstock sources, he said. The formation of the secretariat is underway, and the operational phase will begin once its structure is finalized.

Motaghi highlighted that in 2023, nearly 89 million tonnes of goods were offered through commodity exchanges in Iran, marking an 8% increase from the previous year. Of this amount, about 7.2 million tonnes were sold—up 10% year-on-year.

He noted that credit-based sales surged significantly, accounting for 36–37% of total petrochemical exchange transactions, compared to 26% in previous years.

“These developments occurred alongside critical supply efforts for strategic national sectors, including refineries and power plants,” Motaghi added. He cited that approximately 166,000 tonnes of petrochemical and chemical products were delivered to these sectors last year.

NPC also continues to play a regulatory role in inter-complex exchanges, currently overseeing around 450,000 tonnes of inter-company trades, including support for contract negotiation and pricing, Motaghi said.

He added that 113 petrochemical products have been registered with customs authorities for export coordination, and a total of 505 products are currently available in the Iranian market. Of these, 408 are polymer grades produced by 36 petrochemical companies, while the remainder fall into chemical and hydrocarbon categories.

 


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