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Iran eyes Brazil's Petchem industry, with $6.5bn trade in 2022

Iran eyes Brazil's Petchem industry, with $6.5bn trade in 2022
(Tuesday, May 2, 2023) 23:53

TEHRAN (NIPNA) -- Iran-Brazil trade reached $6.5 billion last year, with urea fertilizer being the top export from Iran to Brazil.

Iran's ambassador to Brazil, Hossein Gharibi, revealed these statistics at the specialized meeting of international petrochemical cooperation in the 14th Iran Petrochemical Forum on Monday.

While Brazil produces 2.9 million barrels of crude oil per day, it is not very advanced in the petrochemical industry and heavily relies on imports, including importing $6 billion worth of gas last year.

This creates opportunities for Iran to become a significant player in the Brazilian petrochemical industry.

Brazil is the largest consumer of chemical fertilizers and depends on imports for up to 80% of its needs.

Iran has been supplying urea to Brazil since 2019, and its polymer products have a good market in the country.

However, Iranian businessmen face challenges in participating in the Brazilian market, including the capital required for two-month transportation and the extreme fluctuations in the price of urea.

Ambassador Gharibi also mentioned the lack of a direct transportation line between Iran and Brazil, which is essential for Iran's polymer exports.

He emphasized the need for a long-term view of the Brazilian market and suggested creating an export base for Iranian petrochemical products in the north of Brazil, where agriculture is growing.

This way, Iran could take advantage of its shipping line to the north of Brazil, which is already established, and plan its presence in the region for the next two years.

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