CHINAPLAS ’12: Iran’s PCC, PE producers in joint-marketing talks

20 April 2012 13:40  [Source: ICIS news]

Polyethylene is used in the packaging of fruits. (Source: Plastics Europe).SHANGHAI (ICIS)--Iran’s Petrochemical Commercial Co (PCC) is in talks with several local polyethylene (PE) producers to form joint-marketing partnerships for overseas markets, a company source said on Friday.

The proposed joint-market partnerships are aimed at protecting producers from price fluctuations and maintaining the image of Iran’s PE resins, he said on the sidelines of the Chinaplas 2012 exhibition in Shanghai.

The proposed joint-marketing deal will give PCC exclusive rights to distribute PE for a producer on a commission basis to selected markets, he said.

The commission scheme will be based on pre-agreed prices between PCC and the producer, the source added.

In the event PCC is able to sell a PE cargo for more than the pre-agreed price, PCC will still take the commission due but half of the price differential will be paid to the producer, he said.

A joint-marketing partnership will ensure that any buyers’ negative feedback on product quality is properly conveyed to the producers for action, which in turn will help to maintain the image of Iranian material, he added.

Buyers’ feedback cannot be properly communicated to a producer when there are many distribution channels, he said.

Iran’s PE export will not slow down because of sanctions imposed on Iran over its nuclear programme, the PCC source said.

“Business finds its way, it will not be stopped or slowed by political decisions,” he said.

PCC exported 400,000 tonnes of PE and polyethylene terephthalate (PET) to China last year, 50% less than in the previous year, he said.

PCC’s PE exports to China fell drastically because its exclusive marketing agreements with a number of state-owned Iranian resin producers lapsed when those companies were privatised, he said.

Chinaplas closes on 21 April.

By: Chow Bee Lin
+65 6780 4359

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