Iran Petchem Sector, Private Industry Move to Stabilize Supply Chain amid Production Challenges

Iran Petchem Sector, Private Industry Move to Stabilize Supply Chain amid Production Challenges
(Saturday, May 23, 2026) 12:51

TEHRAN, May 23 (NIPNA) – Iran’s petrochemical industry and downstream private-sector manufacturers are seeking closer coordination to stabilize feedstock supply, manage production bottlenecks and strengthen the country’s petrochemical value chain, officials and industry representatives said.

A joint meeting between the head of the National Petrochemical Company (NPC), Hassan Abbaszadeh, and representatives of downstream industry associations focused on securing raw material supply, addressing production disruptions under special conditions and improving market stability for petrochemical products.

The discussions also included coordination with Iran’s Ministry of Industry, Mine and Trade, the Central Bank and the Iran Mercantile Exchange to manage supply mechanisms across the sector.

Abbaszadeh said the NPC is actively working to remove obstacles facing downstream industries and maintain continuous dialogue with trade associations.

He emphasized that many challenges are being addressed directly within the company’s mandate, while broader regulatory or financial issues are being pursued in coordination with other government bodies.

“Our goal is to maximize coordination between upstream and downstream sectors to resolve business constraints and ultimately improve satisfaction for producers and end users,” he said.

Industry representatives said the talks were constructive and signaled improving conditions in feedstock supply after recent disruptions affecting polymer producers.

Hervik Yarijanian, head of the industry and mining commission at the Tehran Chamber of Commerce, said the meeting included extensive participation from trade associations and provided a platform for direct discussion of production challenges.

He noted that despite recent supply difficulties, polymer production units in Tehran and across Iran remain operational and feedstock deliveries are resuming.

Abbasali Motavaselian, head of the PVC pipe and fittings producers association, said recent shortages had raised concerns among downstream manufacturers, but such consultations help reduce uncertainty and stabilize expectations.

Other industry leaders described the petrochemical value chain as a critical driver of economic recovery, particularly under strained economic conditions. They stressed the importance of continued coordination between upstream producers and downstream industries to ensure market stability.

Saeed Torkaman, head of the National Polymer Industry Association, said implementation of a planned market regulation initiative known as the “Ofogh” plan could help stabilize polymer pricing and supply.

Faramerz Akhtrai, head of Iran’s pharmaceutical materials syndicate, highlighted the strategic role of petrochemicals in domestic drug production, noting that more than 70% of active pharmaceutical ingredients are now produced locally.

He said the petrochemical sector serves as a foundational supplier for multiple industries, including pharmaceuticals and packaging, and that stronger integration between sectors would enhance supply security.

Mohammadreza Shakeri, head of the polymer machinery association, said the group is prepared to assist in rebuilding damaged industrial units by supplying equipment and components at cost to reduce pressure on manufacturers.

Participants agreed that sustained dialogue between industry stakeholders and regulators is essential to overcoming current supply challenges and ensuring long-term stability in Iran’s petrochemical value chain.

 


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