22 July 2010 11:05 [Source: ICIS news]
By Prema Viswanathan
SINGAPORE (ICIS news)--Iran's polymer imports have started to dwindle this month with the shutting down of its credit windows abroad, in the wake of tougher sanctions imposed by the United Nations aimed at halting the country’s nuclear programme, suppliers and buyers said on Thursday.
On the country’s exports, the impact had so far been minimal, they said.
“We have hardly seen any imports of black high density polyethylene (HDPE) pipe grade and copolymer grade polypropylene (PP), both of which Iran does not produce, in the past couple of weeks,” said a Tehran-based trader.
On 10 June, the UN issued its fourth round of sanctions on
Based on a document obtained by ICIS, the Office of Foreign Assets Control of the US Treasury had directed banks not to honour transactions with affiliates of
“We can’t afford to risk offering credit, as most banks won’t accept Iranian letters of credit (LCs) due to the sanctions,” said a source at a Thailand-based producer that usually sells black HDPE pipe grade to
The full effect of the sanctions would likely be felt more after the fasting month of Ramadan which ends in mid-September, when industry players would all be back in the market, said an Iranian trader.
“Buyers don’t need to stock up during the holy month of Ramadan, which begins on 11 August, as this is typically a period of slow trade. But when they return from the Eid ul-Fitr holidays in mid-September, they will want to replenish their inventories,” he said.
Meanwhile, the impact of the sanctions on
Iranian exporters had been finding ways to get around the
“Every day, we see a new Iranian company offering polymer cargoes, Iranian exporters change names like a chameleon changes its colour,” said the Dubai-based trader.
South Asian countries such as
And this despite a directive issued by
“Iranian offers are at least $30-40/tonne lower than offers from other Middle East suppliers, which makes it attractive for buyers to buy cargoes from Iran,” said a Karachi-based trader.
The price gap offset the delays in delivery of cargoes which used to deter buyers from procuring Iranian cargoes, market sources said.
In addition to polymers,
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