Imbalance conditions in the petrochemical supply chain

Disproportionate supply against significant demand, high prices of supplied products, price gap between supplies in the open market, محصول product does not reach the real producers and closure and half supply of some supply chain companies, export of petrochemical products by brokers and intermediaries as other products In domestic markets with prices lower than the prices of petrochemical complexes in these markets, petrochemical complexes can not offer their products at real prices in these markets and on the other hand, producers in the domestic supply chain can not get the raw materials they need at reasonable prices. And stay out of competition in international markets. Reza Mohtashamipour, head of the Petrochemical Supplementary Industries Development Office, says about the situation facing the petrochemical industry: “One of the challenges of the petrochemical industry in the current situation is that petrochemical goods have become a factor in transferring currency from the country.” This means that some brokers and intermediaries active in the markets offer petrochemical products in markets such as Iraq and Afghanistan, where transactions are made in Rials according to the new regulations, and convert the price of the transactions into currency. In this regard, regarding the removal of the price ceiling of some goods in the Iran Commodity Exchange, he said: I had previously mentioned the removal of the price ceiling for some products in the Silver Hall. This means that when a product is offered in the Iranian Commodity Exchange at a price of 60,000 Tomans and the same product is sold in the open market at a price of 9,000 Tomans, it does not make sense to set a price ceiling. He further added: “With this price gap that exists between the Iran Commodity Exchange and the open market, there is no justification for production and the best way to be profitable is to buy the product from the Iran Commodity Exchange and sell it in the open market.” . Thus, removing the price ceiling for some classes can be a factor to eliminate brokers and intermediaries and a factor to balance the market in the current situation. Mohtashamipour said: When a price ceiling is set for products, brokers can set a high volume of Demand to get the main share and ordinary producers can not cope with the power of brokers and are easily removed from the market, and thus in this case the share of brokers is more than the share of real producers. Mohtashamipour says: “The problem is that when it comes to economic efficiency, the product does not reach the producers and a good opportunity is created for brokers and intermediaries to collect and export the product from the markets.” He added: “In this situation, when the product is in the hands of brokers, two things happen.” 1) That product is hard to find in domestic markets, in other words, the market is faced with a shortage of supply and the market is not flooded with the supply of petrochemicals, and we face more registered demands every week. Evidence of this claim is that in these circumstances, the products are eaten in the silver hall and reach the brokers. In addition to these prices, even if the product is found in the open market, the prices are very high and there is a significant difference between the price in the domestic market and the Iranian Commodity Exchange. 2) Due to the fact that products across the border have higher prices, the product is offered at a high price in domestic markets and most of these products are exported to neighboring markets, and this causes the supply of petrochemical complexes can not flood the market. And the domestic market will remain thirsty and on the other hand the product will fall into the hands of competitors of downstream producers and cause the supply chain producers to lose their share in the global markets. On the other hand, for example, if a product is priced at one thousand dollars and goes to the Iranian Commodity Exchange with a price of 4200 Tomans and is bought by brokers and intermediaries at a price of 4600 Tomans with 10% competition and reaches markets such as Iraq and Afghanistan at a cost, there is no need. It is not to be sold with a currency of 6,200 tomans, and if it sells with a price of 5,500 tomans, it has made a profit. In this way, both the petrochemical complex and the downstream producer face problems. Petrochemical companies say that whatever price they put on their export product, the product is offered at a lower price by brokers and intermediaries, and on the other hand, domestic producers supply the product with higher figures, which causes them to lag behind their competitors in the first stage. And increase the final price of their product and can not sell their products in international markets. He added: “I believe that in the current situation, two measures should be taken.” 1) Export should be stopped by non-petrochemicals. Unfortunately, the Trade Development Organization’s Office of Regulations does not prevent this, and goods obtained from illegal transactions cross the country legally. There is a legal point to this that if someone wants to cross the petrochemical product across the border and is not a producer himself, he has definitely procured the product illegally. The reason is that if the product has been purchased from the Iran Commodity Exchange, ‌ a letter of commitment has been given to the relevant organization regarding this purchase, and if the petrochemical companies want to export their product outside the law, before the products are exported. They have problems. So it is the intermediaries and brokers who legally export the products they have obtained illegally.