04 June 2013 10:20 [Source: ICIS news]
SINGAPORE (ICIS)--Iran’s polyethylene (PE) exports to China and India are unlikely to fall significantly as a result of the new US sanctions because the Iranian petrochemical companies affected are not active PE exporters, industry sources said on Tuesday.
The US Treasury Department identified eight petrochemical companies last week that it says are owned by the Iranian government, making them subject to sanctions.
Those companies are Bandar Imam Petrochemical (BIPC), Bou Ali Sina Petrochemical, Mobin Petrochemical, Nouri Petrochemical, Pars Petrochemical, Shahid Tondgooyan Petrochemical, Shazand Petrochemical and Tabriz Petrochemical.
BIPC, Shazand Petrochemical and Tabriz Petrochemical produce PE resins, but they do not export much of these cargoes, said a source at an Iranian trading company.
Most of the Iranian petrochemical companies implicated in the latest US sanctions are state-owned, but most of the Iranian producers that export PE are privately owned, a Chinese trader said.
Iranian producers have continued offering PE to India and often at discounted rates, said importers in India.
Some Indian buyers claimed they could secure Iranian PE priced at $30-50/tonne (€23-38/tonne) lower than cargoes offered from the other supply origins, such as Saudi Arabia.
Despite the possibility of cheaper cargoes from Iran, some Indian buyers said they prefer to buy domestic cargoes because of the weak Indian rupee and the shorter delivery time.
($1 = €0.76)
Additional reporting by Muhamad Fadhil, Angie Li
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