Tehran, Iran, PIMI — The “Iranian Competition Council“’s remedy (advise) for regulating the petchem products’ market has come in the form of authorizing the Khalije Fars Holding (KFH= Persian Gulf Holding) refinery to offer 5500 tons of PET in a single day with no price ceiling.
The news was announced in a session of the Petrochemical Market Regulation Workgroup.
In the week ending August 9, there was much crisis and heat over the PET market. In that critical week, with an unbelievable demand for 94,886 tons of the product, there was only 4,576 tons of supply. To find a solution, one of the main customers of the PET material, Sanaye Plastic Khuzestan (SPKH) Industries Co. filed a plea for it had not been able to acquire enough of the material although it was prepared to pay 10 percent more as competitive price.
During this week’s session, the KFH’s (Persian Gulf Holding) agent said: Although the minimum supply regulation had been observed by “Tondgooyan Petrochemical Co“., the downturn of the UAE’s JBF production line had resulted in export of the PET in the semi-finished PET bottle preforms to Iraq, Afghanistan, and CIS members, which resulted in increasing FOB prices.
In the end, it was argued during the session that if the weekly supply plans makes it possible, it is advised that the KFH (Persian Gulf Holding) would supply 5500 tons of PET bottle grade in one day per week, with no price ceiling.
Also, it was agreed that Persian Gulf Holding write a letter about exchange currency for imports of PET to the head of the workgroup.
Another issue raised during the session was the increase in the price of the base and the trading prices of Di-Ethylene Hexanol in the Arak Petrochemical Plant during the three weeks ended August 11 due to the removal of the ceiling for the higher demands of the product in the stock exchange.
The Shoe Industry Association‘s representative**, as one of the main beneficiaries of this price and supply problem for the raw materials, called for control of the DEH base price by the National Petrochemical Company and the order in which it was supplied by the petrochemical company. In this case, the NPC argued for setting the base price for the workshop, and the scheme for importing goods by the association was also examined.
** The full name is: Association of Managers & Experts of Iranian Shoe Indstry
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The first International Conference on “Disposables and Bio-Polymers” in Iran
