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Petchem Credit Supply Surges to Approximately 55 Units by Early January 2024

Petchem Credit Supply Surges to Approximately 55 Units by Early January 2024
(Monday, January 8, 2024) 17:07

TEHRAN (NIPNA) -- The Deputy for Downstream Industries Development at the National Petrochemical Company (NPC) disclosed that nearly 55,000 billion Tomans in credit supply was extended to the downstream petrochemical industries from March to the end of December in 2023.

Abbas Gholami reported that the total credit sales in the stock market and direct sales in December of the current year accounted for 36% (31% in the commodity and energy exchange).

"During the mentioned period, the value of petrochemical product supply via credit exceeded 7.5 trillion Tomans," Gholami stated.

Emphasizing the continuing revival of production units, Gholami underscored the importance of petrochemical companies' engagement in supplying their products via credit. He elaborated that many petrochemical companies and holdings are actively participating in this national strategy to complete the value chain, with respective credit sales percentages led by Toppico Holding at 55%, Persian Gulf Holding at 40%, Parsian Holding at 39%, Shastan Holding at 39%, and Bakhtar Holding at 37%. Petrofarhang Holding, however, has yet to engage in any form of credit sales.

The breakdown of credit supply for petrochemical products witnessed a rise from 3.2 units in March-April to 5.5 units in April-May, 5.8 units in May-June, 6 units in June-July, 7 units in July-August, approximately 6,200 units in August-September, 7.2 units in September-October, 7.1 in October-November, and culminating in 7.5 units in November-December 2023.

The Petrochemical Company's initiative to address production hindrances in auxiliary industries identified the provision of liquidity and circulation capital as a primary challenge for participants in the country's downstream petrochemical industries to procure raw materials.

As a result of this strategic move, a credit supply of around 55,000 billion Tomans to downstream petrochemical industries from March-April to the end of November-December 2023 has been realized. The augmentation of credit sales, besides reviving industrial units, has accelerated the development of final products, maximized value-added, and significantly increased employment opportunities within the country.

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