75% of Iran’s polymer production capacity unused
Iran’s polymer industries have a production capacity of 20 million tonnes, of which nearly 15 million tonnes (around 75%) are unused, which has had negative effects on Iran’s export potential. , according to the chairman of the board of directors of the National Association of Polymer Industries.
“The issue of final prices is the main obstacle preventing us from increasing our exports. Producers buy the raw material at high prices which result in higher final prices. This alone has thwarted our competitive advantage in international markets, ”Saeed Torkaman also said, quoted by Fars News Agency.
The official noted that Iran’s polymer industry accounts for 1.5% of the country’s annual gross domestic product and generates 3.6% of Iranian jobs.
“The industry represents on average 2.2% of the country’s non-oil exports. We exported 2.5 billion tons of different types of polymer products in 2020, which shows a decrease from the previous year. The downstream polymer industries also exported nearly $ 2.7 billion during the same period, ”he added.
International customers take advantage of economic sanctions imposed on Iran to seek bargains and more discounts, repatriation of currencies costs more due to increased money transfer fees and changes in destination markets Iranian exports, all of which have resulted in lower polymer export revenues.
“To increase exports, we suggest a review of the pricing of polymer products by the government. In addition, producers need to pay more attention to designs, printing and packaging, and use different ways of selling and paying, ”Torkaman said.