21 November 2013 08:40 [Source: ICIS news]
DUBAI (ICIS)--Petrochemical industry players in the Middle East market are hoping the international sanctions imposed on Iran would eventually be lifted, with the resumption of negotiations between the global major powers and Tehran over the country’s nuclear programme.
Lifting the sanctions on Iran would free up more petrochemical supply and could hold sway on price direction of global commodities, industry players said at the sidelines of the the 8th annual Gulf Petrochemicals and Chemicals (GPCA) Forum in Dubai.
"There will be excess supply should [the Iran] sanctions be lifted. That will push prices down a lot,” a South Asian-based trader said.
Iranian producers are currently selling their petrochemical output at below market prices, according to a Dubai-based industry source, but added that the situation could change once the sanctions are lifted.
Petrochemical makers in the country may decide to hike offers to improve their margins, the industry source said.
Taking a more sanguine view of market conditions, if and when the Iran sanctions are lifted, a Saudi converter said: “For prices to be determined, we will need to look at supply and demand."
Global world powers and Iran are holding talks this week, raising expectations of an easing down of the international sanctions on the Middle Eastern country.
But progress on the issue may not come quickly, a Pakistani-based petrochemical industry source warned.
The two-day GPCA Forum ends on Thursday.
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