Commodity Exchange Key to Petchem Market Transparency Says

Commodity Exchange Key to Petchem Market Transparency Says
(Saturday, May 23, 2026) 12:55

TEHRAN, May 23 (NIPNA) – The head of Iran’s Masterbatch and Compound Producers Association said the commodity exchange plays a central role in enhancing transparency in petrochemical markets and could support greater stability if operational conditions for downstream industries are further improved.

Mohammadmehdi Khorasani made the remarks during a meeting of the association’s commercial commission held at the Iran Chamber of Commerce, Industries, Mines and Agriculture, where industry participants reviewed raw material supply conditions, foreign trade challenges, and intra-sector coordination.

He noted that supply through the domestic commodity exchange has at times been constrained, including periods of reduced allocation volumes, which he said has affected procurement conditions for downstream producers. He also pointed to pricing increases in certain feedstocks alongside purchasing restrictions as a source of operational pressure for manufacturers.

Khorasani highlighted allocation mechanisms within the exchange system, including shipment-based factors, as a structural issue affecting access to materials despite nominal quota availability. He called for a review of allocation procedures to better align with actual production requirements across processing industries.

Officials and industry representatives at the meeting also discussed import registration processes, customs clearance, and foreign currency allocation. Participants noted that limited foreign exchange resources and administrative constraints could affect production capacity, while emphasizing the need for more coordinated policy implementation to reduce friction in supply chains.

 


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