DOP Dispute Over Importation from Saudi Arabia to Europe

DOP Dispute Over Importation from Saudi Arabia to EuropeWhile 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. (Read our analysis at previous article):

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.
Some producers point out that in Iran the demand for DOP is about 1.250 tons/week, saying that the minimum demand for this material is 1,255 tons, but unfortunately the supply is less than this, while That is, the Shazand Petrochemical Company has not supplied Di-Ethyl Hexanol for two weeks during past months.
Until April of this year, the DOP market was in a calm condition, with the supply of DEH between 1,300 and 1,760 tons, so that, part of the supply has entered into the matching system, but by announcing the news of the problems in production lines of Shazand petrochemicals and the lack of supply within two or three weeks, the competition for this product reached 10% and then to 20%.
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.
You are invited to read the comprehensive PIMI analysis over the problem with link to other related news and articles at the “Previous Article” which is opened to the paid subscribers.
DOP Dispute Over Importation from Saudi Arabia to Europe
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