Global DOP Oil Using Prohibition and Price Fights in Iran

Global DOP Oil Using Prohibition and Price Fights in IranWhile considering the dangers of DOP oil, the use of this traditional material for the PVC industries in the world is continuously prohibited,. However, in Iran, for a variety of reasons, the price of this commodity is increasing rapidly, and the dispute over importing it among the “National Competition Council” and the “Shazand Petrochemical” industry is going on. This is the case also for the professional importers of chemicals.

What already exacerbates the increase in the cost of this substance is a series of events in the first half of this year in Iran. In early June 2017, “Bou-Ali-Sina” Petrochemical Plant erupted in the “Ortho-Xylene” {(C6H4(CH3)2} unit and left a loss of € 96m. Farabi’s petrochemicals, which are currently not shipping to the market due to lack of O-Xylene reserves and lack of production, have previously been directly supplying liquid and solid Phthalic Anhydride. On the other hand, the “Borzouyeh Petrochemical Company” faces production problems and its production capacity has reached 50%. Meanwhile, the supply of O-Xylene has dropped to the market this year, and so far has been in the range of 700, 800 to 1000 tons per week, and that’s why competition for this product has increased.
At the same condition, it is said that the dispute over the import of “Di-Eethyl Hexanol” between the Shazand Petrochemicals and the Competition Council is still ongoing. On the other hand, the DOP rate is affected by shortages and reduced supply of Di-Ethyl-Hexanol as well as rising market demand and rising prices in the free market to 55.500 Rials per Kg for the mass purchases.
Some market players say: From the Competition Council and the Producers and Consumers Protection Organization, Shazand Petrochemical is required to import 9000 tons of DEH by the end of the year.
Although others also believe that the Competition Council has always stated in its meetings that there is no obligation for the Shazand Petrochemical Company to import “Diethyl Hexanol”. However, the issue of importing this product, which is carried out annually by Shazand Petrochemicals, this year has become one of the discussions of the Competition Council and still has not come to an end.
Based on the comments of a well-informed official, since the domestic demand for “Diethylhexanol” is about 6,000 tons, and the Shazand Petrochemical Company has been trading through the stock market over the past year and a half for about 1100 tons of “Diethylhexanol” per week, so, as a result, the market seems to have been inflamed by speculators.
In the past two weeks, the price of DOP in Iran’s free market was about 49.000 Rials/Kg, but at the same time the DOP price was imported at 52,000 Rls., hence the concern about the replacement of the DOP of Turkey, China And Pakistan is there too. Because today the DOP price of Korea was announced at Rls. 59.000/Kg, which is due to the world price increase of DOP to $ 1,300 per tonne.
However, the overhaul plans of the two Petrochemical Units in Borzouyeh and Shazand is also high, and most traders are likely to continue to face tensions in the DOP market, but the market seems unlikely to tolerate more prices.
Some market commentators also say that due to the difficult shipping of “Diethylhexanol”, it is difficult to import this commodity. On the other hand, although the Farabi Petrochemical Company has always imported the product from Saudi Arabia with floating tanks, but, political problems with its Arab countries have caused the import of this product to be uncertain at the moment. Some other activists in the market also believe that imports of this material from Southeast Asia or Romania should be made, but, its takes longer time for deals.
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Global DOP Oil Using Prohibition and Price Fights in Iran
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