The naphtha feed of Iran’s petrochemicals was spent on gasoline

According to Energy Press, the lack of management and lack of planning in the petroleum product distribution company and the lack of gasoline in the country have also challenged other sectors. Naphtha, which was previously used to produce propylene, must now be converted into gasoline, and this issue has disrupted the market of many polymer products. Capital market activists and downstream industry producers say that last year, the continuous decrease in the supply of polypropylenes, especially the attractive grades of chemical polypropylene, and the concern over the continued drop in supply had caused heavy price competition for these products. Mahdavi Abhari, the secretary of Petrochemical Industry Employers’ Association, tells Bazar about this: Many industries complain to us that why the propylene market is so chaotic. The problem is that due to the shortage of Nafta, the production of propylene and polypropylene in the country has decreased; It is natural that in such a situation, the supply in the market will decrease. I must mention that due to the shortage in the country, even the export of these products has been stopped and all products are sold in the domestic market.

The supply decreased by 20%

There are no exact statistics on the amount of polypropylene last year, but market activists report a drop of at least 20% in supply. It is interesting to know that in 1400 about 1 million tons and in 1401 about 940 thousand tons of polypropylene were supplied. Market activists believe that due to the problems in feed supply and the subsequent decrease in the production of this product in 1402, the supply of polypropylene did not reach 800,000 tons last year.

This decrease in supply has also increased the prices in the market. Mahdavi Abhari says: The lack of feed in this industry during the past months caused the balance between supply and demand to be upset, and in other words, the amount of demand exceeded the amount of supply. These conditions led to 100% competition in this market.

In the continuation of his explanation, he added: Nafta is considered one of the strategic feeds, which unfortunately we are lacking in its production. Considering the influential role of Nafta in the propylene production chain, any shortage in this feed can challenge the production of this chain. In addition, propylene itself is considered as polypropylene feed. Due to the lack of naphtha and followed by propylene, polypropylene producing companies are producing with limited and small capacity, and the inflammation in the market is caused by this issue. Currently, the condition of supplying Nafta feed is somehow tied to the situation and policies that are made around gasoline.