BMI View: The Iranian petrochemicals industry will be hit by the domestic economic contraction and international sanctions, leading to an increase in surplus capacity. Only protectionism will shield the industry from a severe contraction, but there are risks of plant idling, postponement of project and effective insolvency that will undermine the government’s target of reaching a petrochemicals capacity of 100mn tpa by 2017. Iran’s nominal petrochemical production capacity increased by about 13% to around 60mn tpa in FY2012/13, according to official sources. BMI estimates that petrochemicals output was around 40mn tonnes, of which 15.8mn tonnes worth US$11.2bn was exported. This …
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