Market Study: Petrochemicals and Plastics  - Iran

Introduction

The end of economic sanctions against Iran creates a gold-rush atmosphere for many industries. The country counting 75 million inhabitants owns rich oil and gas resources and is returning to the world market. After almost ten years of isolation, there is an enormous pent-up demand of investments. Not only the market potential but also the need for information is high: Until business relations are completely normalized, many obstacles will have to be overcome. In this study, the market for petrochemical products and plastics in Iran is analyzed in detail for the first time: from raw materials such as methanol, ethylene, propylene, butadiene/ butylene and aromates, to their direct derivates and intermediates, and to plastics such as polypropylene and polyethylene.

Considerable Increases in Capacity

Capacities and production of the petrochemical industry of the Iran were increased in the past years. In 2015, total capacity of methanol, ethylene, propylene, butadiene / butylene, aromates and the derivates of these products amounted to 31 million tonnes. Production capacity for the production of ethylene thereby accounted for more than 23% of the total capacity. Furthermore, ethylene derivates, such as ethylene dichloride (EDC) and ethylene glycol, accounted for almost 17% of capacity. Another 4.8 million tonnes of capacity were consumed by the three types of polyethylene plastics LDPE, LLDPE, and HDPE. In the upcoming years, another expansion is planned. Part of this project is under construction already and is planned to be completed by 2018/19 - additional plants are being planned. Until 2023, 36 million tonnes of capacity are expected to be added.

Growing Export to Europe

Although the Iran is one of the largest domestic markets for petrochemical products in the Middle East, the focus of many Iranian companies is on export. Accounting for approx. 6.8 million tonnes, a major part of petrochemical products was exported already in 2015. We expect this volume to almost double until 2023. Methanol is the most commonly exported product - in 2015, export volume amounted to almost 3.4 million tonnes. The second most important export product was HDPE. Major part of the exports was delivered to the region Asia-Pacific, mainly to China. Although demand for imports in China is currently high, we expect growth rates to decrease in the long term. This limits the growth of export for products from Iran in the future. At the same time however, new possibilities are revealed: Especially exports to Western and Eastern Europe as well as to other Asian countries are expected to increase. To fulfill this aim, numerous constructions of petrochemical plants are supposed to be completed with the aid of foreign investors.

Profitable End of Sanctions

Due to the abolition of sanctions concerning the export of petrochemical products in 2014, exports have been rising again. We assume that the economic situation of the Iran will improve considerably after the abolition of almost all sanctions. An important step thereby were the first easing of sanctions in January 2014 as well as the Vienna nuclear agreement in the middle of 2015. After the dismantling of the Iranian nuclear program could be confirmed according to the Vienna nuclear agreement, the United Nations and the European Union abolished their nuclear-related economic and financial sanctions against the Iran on January 16, 2016, the so-called "Implementation Day". Thus, numerous restrictions in the segments finance and energy are dropped. Financial relations are normalized like this and Iranian banks are connected to the SWIFT-system. Due to the abolition of financial and economic sanctions, we expect a partly massive increase of trade volume for various goods in the future. Presumably all industries of the Iran, from agriculture to the metal industry, will profit thereof - especially the petrochemical industry due to the high oil and natural gas deposits in the country.

The Study in Brief:

Chapter 1 offers an overview over the market for petrochemical products and plastics in Iran. Data on current and prospective production, capacity, and trade is provided.

In chapters 2 to 6, markets for methanol, ethylene, propylene, butadiene / butylene, and benzene / toluene / xylene respectively are presented. In the subsections of the respective chapters, downstream products are taken into consideration. Figures of demand, production, capacity, and trade for the years 2007 to 2023 are given for the following products:
- Polyethylene (HDPE, LDPE, LLDPE)
- Ethylene dichloride
- Vinyl chloride / polyvinyl chloride
- Other ethylene - derivates (ethylbenzene, alfa olefines, vinyl acetate monomer, ethylene oxide (EO), ethylene glycol (EG), glycol ether, ethoxylates, ethanolamines)
- Polypropylene
- Other propylene derivates (propylene oxide, acrylonitrile, 2-ethylhexanol, acrylic acid)
- Ethylbenzene / Styrene
- Polystyrene / expendable polystyrene
- Acrylonitrile butadiene styrene
- Other styrene derivates (styrene butadiene rubber)

Chapter 7 is a useful directory of profiles of petrochemical producers in Iran. The profiles are clearly arranged according to contact details, ownership structure, product range, production sites, and summary profile. Each profile also includes specific information about the value creation chain as well as current and future production capacities for each product.

Table of Contents

1 Market Data - Overview
Capacities
Production and Trade

2 Methanol

Demand
Production and Trade
Capacities

3 Ethylene
Demand
Production and Trade
Capacities
3.1 Polyethylene - HDPE
Demand
Production and Trade
Capacities
3.2 Polyethylene - LDPE
Demand
Production and Trade
Capacities
3.3 Polyethylene - LLDPE
Demand
Production and Trade
Capacities
3.4 Ethylene dichloride (EDC)
Demand
Production and Trade
Capacities
3.4.1 Vinyl chloride (VCM) / Polyvinyl Chloride (PVC)
Demand
Production and Trade
Capacities
3.5 Other Ethylene Derivates
Demand
Capacities

4 Propylene
Demand
Production and Trade
Capacities
4.1 Polypropylene
Demand
Production and Trade
Capacities
4.2 Other Propylene Derivates
Demand
Capacities

5 Butadiene / Butylene
5.1 Butadiene
Demand
Production and Trade
Capacities
5.2 Butylene
Demand
Capacities

6 Benzene / Toluene / Xylene
6.1 Benzene
Demand
Production and Trade
Capacities
6.1.1 Ethylbenzene / Styrene
Demand
Production and Trade
Capacities
6.1.1.1 Polystyrene
Demand
Production and Trade
6.1.1.2 Expandable Polystyrene (EPS)
Demand
Production and Trade
Capacities
6.1.1.3 Acrylonitrile-Butadiene-Styrene (ABS)
Demand
Production and Trade
Capacities
6.1.1.4 Other Styrene Derivates
Demand
6.2 Toluene
Demand
Production and Trade
Capacities
6.3 Xylene
Demand
Production and Trade
Capacities

7 Company Profiles
7.1 Iran (36 Producers)

List of Graphs

Graph 1: Capacity of petrochemicals and plastics in Iran in 2015 and 2023 - split by products in tonnes
Graph 2: Capacity of petrochemicals and plastics in Iran in 2015 - split by products in percentages
Graph 3: Capacity of petrochemicals and plastics in Iran in 2023 - split by products in percentages
Graph 4: Production of petrochemicals and plastics in Iran in 2015 and 2023 - split by products in tonnes
Graph 5: Production of petrochemicals and plastics in Iran in 2015 - split by products in percentages
Graph 6: Capacity of petrochemicals and plastics in Iran in 2023 - split by products in percentages
Graph 7: Export of petrochemicals and plastics in Iran in 2015 and 2023 - split by products in tonnes
Graph 8: Export of petrochemicals and plastics in Iran in 2015 - split by products in percentages
Graph 9: Export of petrochemicals and plastics in Iran in 2023 - split by products in percentages
Graph 10: Demand for methanol from 2007 to 2023
Graph 11: Production of methanol from 2007 to 2023
Graph 12: Import and export of methanol from 2007 to 2023
Graph 13: Demand for ethylene from 2007 to 2023
Graph 14: Production of ethylene from 2007 to 2023
Graph 15: Import and export of ethylene from 2007 to 2023
Graph 16: Demand for polyethylene - HDPE from 2007 to 2023
Graph 17: Production of polyethylene - HDPE from 2007 to 2023
Graph 18: Import and export of polyethylene - HDPE from 2007 to 2023
Graph 19: Demand for polyethylene - LDPE from 2007 to 2023
Graph 20: Production of polyethylene - LDPE from 2007 to 2023
Graph 21: Import and export of polyethylene - LDPE from 2007 to 2023
Graph 22: Demand for polyethylene - LLDPE from 2007 to 2023
Graph 23: Production of polyethylene - LLDPE from 2007 to 2023
Graph 24: Import and export of polyethylene - LLDPE from 2007 to 2023
Graph 25: Demand for ethylene dichloride (EDC) from 2007 to 2023
Graph 26: Production of ethylene dichloride (EDC) from 2007 to 2023
Graph 27: Import and export of ethylene dichloride (EDC) from 2007 to 2023
Graph 28: Demand for polyvinyl chloride from 2007 to 2023
Graph 29: Production of polyvinyl chloride from 2007 to 2023
Graph 30: Import and export of polyvinyl chloride from 2007 to 2023
Graph 31: Demand for ethylene in other applications from 2007 to 2023
Graph 32: Demand for propylene from 2007 to 2023
Graph 33: Production of propylene from 2007 to 2023
Graph 34: Import and export of propylene from 2007 to 2023
Graph 35: Demand for polypropylene from 2007 to 2023
Graph 36: Production of polypropylene from 2007 to 2023
Graph 37: Import and export of polypropylene from 2007 to 2023
Graph 38: Demand for propylene in other applications from 2007 to 2023
Graph 39: Demand for butadiene from 2007 to 2023
Graph 40: Production of butadiene from 2007 to 2023
Graph 41: Import and export of butadiene from 2007 to 2023
Graph 42: Demand for butylene from 2007 to 2023
Graph 43: Demand for benzene from 2007 to 2023
Graph 44: Production of benzene from 2007 to 2023
Graph 45: Import and export of benzene from 2007 to 2023
Graph 46: Demand for styrene from 2007 to 2023
Graph 47: Production of styrene from 2007 to 2023
Graph 48: Import and export of styrene from 2007 to 2023
Graph 49: Demand for polystyrene from 2007 to 2023
Graph 50: Production of polystyrene from 2007 to 2023
Graph 51: Import and export of polystyrene from 2007 to 2023
Graph 52: Demand for expandable polystyrene (EPS) from 2007 to 2023
Graph 53: Production of expandable polystyrene from 2007 to 2023
Graph 54: Import and export of expandable polystyrene from 2007 to 2023
Graph 55: Demand for acrylonitrile-butadiene-styrene (ABS) from 2007 to 2023
Graph 56: Production of acrylonitrile-butadiene-styrene from 2007 to 2023
Graph 57: Import and export of acrylonitrile-butadiene-styrene from 2007 to 2023
Graph 58: Demand for styrene for other derivates from 2007 to 2023
Graph 59: Demand for toluene from 2007 to 2023
Graph 60: Production of toluene from 2007 to 2023
Graph 61: Import and export of toluene from 2007 to 2023
Graph 62: Demand for xylene from 2007 to 2023
Graph 63: Production of xylene from 2007 to 2023
Graph 64: Import and export of xylene from 2007 to 2023

List of Tables

Table 1: Market overview methanol
Table 2: Demand for methanol from 2007 to 2023 – split by application
Table 3: Capacities of the most important methanol derivates - split by producers
Table 4: Methanol capacities in 2015 – split by producer
Table 5: Changes in methanol capacities – split by producer
Table 6: Market overview ethylene
Table 7: Demand for ethylene from 2007 to 2023 – split by application
Table 8: Ethylene capacities in 2015 – split by producer
Table 9: Changes in ethylene capacities – split by producer
Table 10: Market overview polyethylene - HDPE
Table 11: HDPE capacities in 2015 – split by producer
Table 12: Changes in LDPE capacities – split by producer
Table 13: Market overview polyethylene - LDPE
Table 14: LDPE capacities in 2015 – split by producer
Table 15: Changes in LDPE capacities – split by producer
Table 16: Market overview polyethylene - LLDPE
Table 17: LLDPE capacities in 2015 – split by producer
Table 18: Changes in LLDPE capacities – split by producer
Table 19: Market overview ethylene dichloride (EDC)
Table 20: Ethylene dichloride capacities in 2015 – split by producer
Table 21: Market overview polyvinyl chloride (PVC) / vinyl chloride (VCM)
Table 22: Vinyl chloride capacities in 2015 – split by producer
Table 23: Polyvinyl chloride capacities in 2015 – split by producer
Table 24: Capacities of other ethylene derivates in 2015 – split by producer
Table 25: Changes in capacities of other ethylene derivates – split by producer
Table 26: Market overview propylene
Table 27: Demand for propylene from 2007 to 2023 – split by application
Table 28: Propylene capacity in 2015 – split by producer
Table 29: Changes in propylene capacities – split by producer
Table 30: Market overview polypropylene
Table 31: Polypropylene capacity in 2015 – split by producer
Table 32: Changes in polypropylene capacity – split by producer
Table 33: Changes in capacities of other propylene derivates – split by producer
Table 34: Market overview butadiene
Table 35: Demand for butadiene from 2007 to 2023 – split by application
Table 36: Capacities of important butadiene derivates in 2015 – split by producer
Table 37: Butadiene capacities in 2015 – split by producer
Table 38: Butylene capacities in 2015 – split by producer
Table 39: Market overview benzene
Table 40: Demand for benzene from 2007 to 2023 – split by application
Table 41: Benzene capacities in 2015 – split by producer
Table 42: Market overview ethylbenzene / styrene
Table 43: Demand for styrene from 2007 to 2023 - split by application
Table 44: Ethylbenzene capacities in 2015 – split by producer
Table 45: Styrene capacities in 2015 – split by producer
Table 46: Market overview polystyrene
Table 47: Market overview expandable polystyrene (EPS)
Table 48: Changes in expandable polystyrene capacity – split by producer
Table 49: Market overview acrylonitrile-butadiene-styrene (ABS)
Table 50: ABS capacities in 2015 – split by producer
Table 51: Market overview toluene
Table 52: Toluene capacities in 2015 – split by producer
Table 53: Market overview xylene
Table 54: Xylene capacities in 2015 – split by producer
Table 55: Changes in xylene capacities – split by producer
Table 56: Capacities of the most important xylene derivates in 2015 – split by producer