Petchem Supply Growth Supports Market Price Stability

Petchem Supply Growth Supports Market Price Stability
(Wednesday, June 10, 2026) 14:05

TEHRAN, June 10 (NIPNA) – Iran’s National Petrochemical Company (NPC) said domestic supplies of petrochemical feedstocks are improving, with rising product availability and continued price stability helping move the market toward a more balanced condition.

Mohammad Motaghi, NPC’s Director of Downstream Industry Development, said increased product offerings have eased competition on the Iran Mercantile Exchange and Energy Exchange, allowing prices to gradually return to more normalized levels.

“Part of the demand that remained unmet in recent weeks is now being supplied, and conditions for downstream industries are gradually moving closer to normal,” Motaghi said.

According to NPC, petrochemical product availability has improved significantly compared with the previous month, although market conditions have not yet fully returned to last year’s equilibrium levels. Motaghi said supply volumes are expected to increase further in the third week of Khordad and continue rising as petrochemical complexes complete reconstruction and operational recovery programs.

The official reported improved availability of polyvinyl chloride (PVC), adding that supply volumes are expected to increase further over the next one to two weeks. Two key grades, S60 for medical and healthcare applications and S65 for pipes, fittings, and industrial uses, are currently being produced and supplied simultaneously.

Motaghi also said domestic polyethylene demand is largely being met at volumes comparable to the previous year.

In the polyethylene terephthalate (PET) segment, production volumes have increased, with textile-grade output resuming alongside bottle-grade production. He added that capacity expansions at Bou Ali Sina Petrochemical Company are expected to support higher feedstock availability for textile-grade PET production at Shahid Tondgouyan Petrochemical Company.

The company said adjustments to industrial allocation quotas by the Ministry of Industry, Mine and Trade, combined with increased petrochemical supply, have helped ease raw-material constraints for downstream manufacturers.

Motaghi noted that the policy of calculating base prices using international benchmark prices prevailing before the conflict period remains in effect. As a result, petrochemical products traded on commodity and energy exchanges continue to be priced according to those earlier global reference levels, with only exchange-rate movements reflected in pricing calculations.

He emphasized that no price increases linked to subsequent changes in international petrochemical markets have been applied to domestic products and that pricing policies remain aligned with directives issued by relevant authorities.

Addressing recent attention on detergent prices, Motaghi said the petrochemical industry has maintained stable pricing for linear alkylbenzene (LAB), a key detergent feedstock. He added that all LAB transactions on the commodity exchange have been completed at base prices without competitive bidding.

According to NPC, petrochemical producers have fully supplied detergent manufacturers’ raw-material requirements. While transportation and logistics challenges have occurred at times, the company said feedstock availability has remained uninterrupted and no price increases have been implemented for LAB supplies.

 


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