Improper interaction of petrochemicals with complementary industries despite benefiting from subsidies

According to INPIA, the ninth meeting of the Commercial Commission of the National Association of Plastic Industries of Iran was held on January 27, 2017 in the office of the Association of Polyethylene Pipe and Fittings Manufacturers, chaired by Motusalian, Chairman of the Board of the National Association. The agenda of the commission was: pre-order […]

According to INPIA, the ninth meeting of the Commercial Commission of the National Association of Plastic Industries of Iran was held on January 27, 2017 in the office of the Association of Polyethylene Pipe and Fittings Manufacturers, chaired by Motusalian, Chairman of the Board of the National Association. The agenda of the commission was: pre-order news, reporting on the supply and demand of polymer materials in December, targeting and writing a description of the duties of the committees, including; Raw Materials Committee and Transportation Committee. In the pre-order news section, Motusalian referred to the issue of petrochemical feed rates and said: “Recently, the parliament approved an instruction on petrochemical feed rates, and I raised this issue with a member of parliament and followed up on the issue.” He continued: “After the follow-up, the parliament expressed regret for the approval of this resolution.” The head of the National Association of Plastic Industries of Iran, stating that we are not against the use of subsidies by petrochemicals, clarified: Despite their benefit from subsidies, but the interaction of petrochemical industries with complementary industries is not correct and desirable. Motusalian said: “After in 1993, they decided to calculate the price of petrochemical products at the free exchange rate, but now these products are offered in a way that creates competition, and in practice, the finished products are non-competitive.” They take themselves. He continued in this regard: I raised this issue in the Iran Chamber and after the follow-up and coordination with other industries such as steel, the recent statutes of 12 organizations were addressed to the President of Iran. Hobe Fekr, one of the other members present at the meeting, referred to the recent elections of the Tehran Homogeneous Plastic Industries Association and said: “This election was attended by a large number of members and representatives of the Ministry of Industries and the Tehran House of Industry and Mines, in complete peace.” And sobriety was held. He said: The policy of the new board of directors of the Tehran Homogeneous Plastic Industries Association is to think and empathize with other organizations, and to achieve this, we have decided to hold periodic joint meetings with other associations. Kharazi, another member of the Trade Commission of the National Association of Plastic Industries of Iran, addressed the issue of problems with petrochemicals and said: “Recently, we held meetings with Maroon and Jam Petrochemicals, but to no avail.” He continued: The downstream industry development office of the National Iranian Petrochemical Company says one thing and the petrochemical units say another, in general, beautiful words are said, but in practice nothing happens. In another part of his speech, Motusalian mentioned the National Competition Council as the only institution that can act directly and in fact has executive power. Kharrazi also stressed the need to support influential institutions of cooperatives. Diane P., secretary of the Polyethylene Pipe and Fittings Manufacturers Association, also pointed to the existence of a wave to bring the organizations under control, saying that the issue was becoming epidemic in many associations. He continued: “Now in the Iranian Chamber of Commerce, a water federation has been formed, of which I am also a member of the board.” Now the federation wants to do something. The upstream institutions are emphasizing the formation of a confederation. Seyed Javad Mousavi, an expert on the Commodity Exchange and a member of the Commercial Commission of the National Association of Plastic Industries of Iran, also stated: “With the current practice, the issue of cooperatives will become a problem in the future.” Here, it seems necessary for organizations such as the National Plastics Association to closely monitor and then allocate quotas to production units. He added: “When the inflammation of the polyethylene market was at its peak and these materials were not in a good condition, an investigation revealed that many of the recipients of these products did not have any production.” In this regard, Diane Pay said: The Polyethylene Association identified many anonymous companies and even provided the amount of materials required by the production units to the relevant institution, and they also informed the provinces to correct the quotas, but in the end. The provinces responded that the existing quotas were correct. He considered it necessary to put the optimization of Behin Yab site on the agenda. Motusalian also stated in this regard: Mr. Mehdi Pourghazi is supposed to work with one of the association’s staff regarding the Behin Yab site. He said: “The National Association of Plastic Industries of Iran has received the approval to improve the Behin Yab site from the market regulation working group, and we are now seeking the support of the Competition Council to strengthen the work.”