Iran has seen its output of petrochemical products increase on a yearly basis despite forecasts predicting that the sector would experience a major slump after the spread of the coronavirus in the country and in major export markets.
A senior official from Iran’s National Petrochemical Company (NPC) said on Monday that output in the country’s petchem plants had risen by six percent in the five months ending late August compared to the similar period in 2020 to reach a total of 25 million metric tons.
“Many of the (petrochemical) complexes have seen output growth,” said Seyyed Jalal Mirhashemi, adding that further growth is expected in the sector until the end of the current calendar year in March as Iran plans to open new plants while trying to increase production at existing plants.
The surge in petchem output comes despite forecasts issued by major global economic institutions saying that Iran will see its output as well as its operational capacity in petrochemical plants decline by as much as 50 percent as a result of lower domestic and international demand this year.
The forecasts believed Iran’s sizable hard currency revenues from exports of petrochemical products would decrease significantly mainly because of lower demand in key exports markets like China and India.
Lower output had also been tied to plant closures ordered by the government to curb the spread of the virus in Iran, one of the worst-hit countries in the Middle East by the disease.
However, Iran eyes to increase its export revenues from petrochemicals by billions of dollars in the upcoming years as it seeks to reduce reliance on direct sales of crude which have been a main target of American sanctions since 2018.