No PET Shortage in Summer

EghtesadOnline: The production of polyethylene terephthalate (PET), a form of polyester used to manufacture plastic bottles, has surged by 10% in the last three months, the head of Shahid Tondgouyan Petrochemical Complex in Bandar Mahshahr said.

News ID: ۷۴۷۷۵۲

03 July 2019

"There is no concern about feedstock and we are ready to meet the market's need for the summer when demand soars," Mohammad Isa Anousha was also quoted as saying by NIPNA, the National Petrochemical Company's news agency.

“The plant has produced close to 1,200 tons of PET per day over the last 100 days, indicating a 10% rise compared with last year's corresponding period.”

Referring to the feedstock, the official noted that Nouri Petrochemical Complex in southern Bushehr Province is delivering enough para-xylene and there are no worries regarding the much-needed material, according to Financial Tribune.

"Shahid Tondgouyan Petrochemical Complex, the only producer of PET in Iran, is being supplied with 2,000 tons of p-Xylene per day or 750,000 tons per annum as feedstock," Anousha said, adding that the plant requires 550,000 tons of feedstock annually.

The plant's annual output, including PET and purified terephthalic acid, stands at 1.6 million tons.

PET prices climbed to a record 250,000 rials ($2.2) per kilo in 2018. Reportedly, prices experienced a 500% hike last July, increasing to about 250,000 rials ($2.2) from around 35,000 rials (27 cents).

Following forex market instability, the petrochemical sector has faced upheavals, as most companies prefer to export instead of selling in the domestic market burdened by cumbersome rules, price restrictions and corruption.

The extended shortages of PET supplies, which further jacked up prices, have forced some companies to cut output. That again made a bad situation worse, although officials claim the situation is improving in 2019.

PET, best known as clear plastic, is nothing but a plastic resin and the most common type of polyester. It is the most widely recycled plastic in the world. PET packaging is used extensively across industries because of its convenient usage.

Key drivers responsible for the growth of such packaging are the demand from beverage, healthcare and personal care industries. These industries extensively use such packaging for their end products like drinks, foods, cosmetics and medicines in the form of lotions, liquids, foams and capsules.