Iran’s Jam Petchem stops HDPE exports discussion on possible govt bans

31 October 2012 07:30  [Source: ICIS news]

SINGAPORE (ICIS)--Iran’s Jam Petrochemical Co (JPC) will stop negotiations of new high density polyethylene (HDPE) exports contracts for one week, started from 30 October, as the Iranian government may impose bans on polyolefins exports, a company source said on Wednesday.

“We are not sure whether polymers are within the list of banned [export] goods, so now we just put all our new contracts on hold,” the source said.

Iranian exporters will no longer be able to export goods including wheat, flour, sugar, and red meat, as well as aluminium and steel ingots, according to a letter from Deputy Industry Minister Seyyed Javad Taghavi published in Iranian media on 30 October.

The letter also said that a further list of banned goods would be announced later.

The ban in exports is to prevent further plunge in the Iranian rial currency – a result of the US and European trade sanctions.

JPC said that exports of previously contracted cargoes will still proceed.

“Existing customers do not have to worry, as we are still exporting the transacted cargoes,” he said.

However, he added that perhaps some December shipments might be suspended because of the ban.

“December cargoes are more than 30 days away, we will manage the shipment if the existing contracts get affected,” the source said.

JPC, which produces HDPE injection, blow moulding and pipe grades at its HDPE facilities at Assaluyeh, is an active exporter to China.

JPC also produces polypropylene (PP) which is sold domestically.

By: Ong Sheau Ling
+65 6780 4359

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