NPC Official Calls for Stable Feedstock Supply to Boost Downstream Petchem Output

NPC Official Calls for Stable Feedstock Supply to Boost Downstream Petchem Output
(Monday, October 27, 2025) 10:38

TEHRAN, Oct 27 (NIPNA) – A senior official at Iran’s National Petrochemical Company (NPC) said ensuring a stable supply of petrochemical feedstock is essential for expanding production in the country’s downstream plastic industries, which consume around six million tonnes of polymers annually.


Mohammad Motaghi, NPC’s Director of Downstream Industries Development, told the Responsible Production in the Plastic Value Chain conference that about five million tonnes of plastics are supplied through Iran’s Commodity Exchange each year, while the remainder is imported.

He noted that global plastic production totals some 431 million tonnes, with more than 54% consumed in Asia — chiefly in China, which alone accounts for 34% of global demand. “Only about 10% of the plastics produced worldwide enter recycling loops, while the rest are not yet part of circular systems,” he said.

Motaghi added that heavy polyethylene (HDPE) represents Iran’s largest polymer consumption segment at roughly 1.5 million tonnes per year. Iran currently operates seven polypropylene (PP) production plants, with one more recently added, giving the country a total PP capacity of about 1.45 million tonnes — of which 850,000 tonnes are marketed annually for downstream use.

In polyethylene, total national production capacity stands at 5.5 million tonnes and is expected to rise with new expansion projects.

According to Motaghi, demand patterns show that packaging films account for 35% of polyethylene consumption, followed by blow molding (12%) and injection molding (11%). For polypropylene, injection-molding grades make up 32.8% of total use, followed by film and sheet (25.2%) and raffia and fiber (20.8%).

He highlighted challenges in Iran’s plastic recycling sector, where waste is divided into four main categories — blow-mold, production process, industrial, and general waste — but a significant portion is still not properly collected or processed.

“Last year, the average price of polyethylene scrap was about 60% of the price of virgin material, and for polypropylene it ranged from 50% to 70%, indicating that recycling can be economically viable,” Motaghi said.

Citing global trends, he noted that in 2020 about 75% of plastic waste worldwide was either landfilled or incinerated, with only 10% recycled mechanically. Between 2040 and 2060, the share of chemical recycling is projected to rise from zero to 20% and then 45% as more countries shift toward circular economy models.

Motaghi pointed out that major petrochemical producers in the United States, Germany, Thailand, and Mexico have already entered large-scale mechanical and chemical recycling, establishing units with capacities above 50,000 tonnes per year — a step Iranian upstream firms have yet to take.

He described four main chemical recycling methods: solvent-based recovery, depolymerization, and thermal conversion techniques such as pyrolysis and gasification. He also highlighted upcycling — an emerging approach that transforms polymers into higher-value products, such as converting polyethylene into synthetic fatty acids, industrial waxes, base oils, or polyols for coatings and adhesives.

“The entry of Iran’s petrochemical sector into chemical recycling and related technologies is inevitable,” Motaghi emphasized. “These processes not only reduce environmental impact but also generate significant added value.”

He concluded that achieving a circular economy in plastics requires coordinated action among petrochemical producers, downstream converters, and waste management bodies. “Without an integrated system for collection, sorting, and recycling, responsible and sustainable production across the plastic value chain will remain out of reach,” he said.


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