Iran PU sector may not benefit from propylene push

09 June 2014 12:02 Source:ICIS News

TEHRAN (ICIS)--Iran's polyurethane (PU) sector may not benefit from the country's renewed attempts to push its feedstock propylene production, a key PU industry source said on Monday.

Government officials said during the weekend at the 11th Iran Petrochemical Forum (IFP) that they will use its abundant methanol availability to produce propylene.

The increase in propylene is expected to boost downstream industries such as PU and polypropylene (PP).

However the PU source said more propylene will be used to produce PP rather than PU due to better margins.

"It is a question of priorities I don't see there will be a major production [of downstream propylene oxide and polyether polyols] in Iran,” the source said.

The IFP is an annual conference held in Tehran from 7-8 June.

Additional reporting by Muhamad Fadhil

By Fahima Khail