20 March 2012 09:09 [Source: ICIS news]
SINGAPORE (ICIS)--Iran has maintained its position as the top low density polyethylene (LDPE) exporter to China, despite the financial and trade sanctions imposed on the Middle Eastern country, industry sources said on Tuesday.
Iran exported 33,690 tonnes of LDPE in January this year, up by 61% on a year-on-year basis, data from China Customs showed.
Polyethylene (PE) shipments from Iran have been hampered by the sanctions imposed by the US and Europe, as payment and shipment terms are more complex and take up more time, Chinese importers said.
“Delivery used to be 30 days after a purchase contract is signed, but nowadays it takes double that time for a cargo to be delivered,” one of the Chinese traders said.
Some Chinese traders said they are still keen to buy Iranian LDPE because it is cheaper than other supply sources.
“Iran cannot export to other markets because of the sanctions, hence it has weaker bargaining power when selling to China,” a second Chinese trader said.
Iran was the largest LDPE exporter to China last year, having sold 297,815 tonnes of the resin to that market, according to China Customs data.
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