Hassan Abbaszadeh said about 54 million tons of petrochemical products were produced and 22 million tons were exported during the period.

Speaking Wednesday at a consultative meeting between the oil minister and petrochemical industry stakeholders marking National Petrochemical Industry Day, Abbaszadeh congratulated attendees on the religious holidays of the month of Rajab and the birth anniversary of Imam Ali.

He said the petrochemical industry plays a central role in creating value added, a priority emphasized by Iran’s supreme leader, and in reducing crude and semi-processed exports across the oil and gas value chain from upstream to downstream, in line with the policies of the president and the oil minister.

Production and exports up

Abbaszadeh, who also serves as a deputy oil minister, said the industry recorded growth despite being placed under an “orange” operational status due to wartime conditions.

He said production reached about 54 million tons in the first eight months of the year, compared with 53 million tons in the same period last year. Without the special conditions, production could have been 7 million to 8 million tons higher, he added.

Exports also increased, he said. Petrochemical exports totaled 22 million tons in the eight-month period, up from 21 million tons a year earlier.

Global prices decline

Abbaszadeh said average global prices for petrochemical products have fallen by about 8%, citing factors including links between some product prices and crude oil prices, as well as Russia’s expanded presence in regional markets.

Despite higher export volumes, export revenue totaled $8.8 billion in the first eight months of the year, down from $9 billion in the same period last year, he said, expressing hope that export values will recover in the coming months.

Industry challenges discussed

The meeting brought together chief executives and industry figures, including Mohammad Shariatmadari, CEO of Persian Gulf Petrochemical Industries Company; Ahmad Mahdavi-Abhari, secretary-general of the Petrochemical Industry Employers Association; Javad Zarepour, CEO of Petrofarhang Holding; Sepahdar Ansarinejad, CEO of Bandar Imam Petrochemical Company; Mohammadreza Heidarzadeh, CEO of Arya Sasol Polymer Company; and Rahbar Davoudzadeh, CEO of Entekhab Polystyrene Petrochemical Company.

Participants raised key challenges facing petrochemical companies and reviewed solutions to facilitate further development of the sector.

Issues discussed included feedstock pricing, utility gas rates, petrochemical companies’ debts and receivables related to urea supplies to the Agriculture Ministry, export duties on raw and semi-processed materials, declining global prices, securing stable feedstock supplies and access to financing.