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Credit-Based Sales of Petchems Reach 124 Trillion Rials in August 2024

Credit-Based Sales of Petchems Reach 124 Trillion Rials in August 2024
(Tuesday, September 24, 2024) 17:05

TEHRAN (NIPNA) – Credit-based sales of petrochemical products on commodity exchanges in August 2024 surpassed 124 trillion rials (12.4 thousand billion tomans), marking a significant 75% increase compared to the same period last year, when sales amounted to 70 trillion rials (7 thousand billion tomans).

 

 

According to the National Petrochemical Company’s Downstream Development Management, the credit-based sales made up 38% of the total sales in August, underscoring the growing reliance on credit to support downstream industries. This surge in sales represents a substantial jump of 54 trillion rials compared to August 2023.

The development and enhancement of downstream industries, aligned with the completion of the petrochemical value chain, play a critical role in reducing raw material exports, curbing imports of petrochemical products, creating jobs, and boosting economic growth. This also strengthens Iran's position in regional and global markets.

The National Petrochemical Company has prioritized balanced growth within the industry, reflecting the policies of Iran’s 13th government. Since last year, the company has focused on identifying and addressing production obstacles in downstream sectors, particularly those operating below capacity or struggling with economic slowdowns.

One of the key challenges identified by the company is the lack of working capital and liquidity for purchasing raw materials. To tackle this issue, the National Petrochemical Company has encouraged an increase in credit-based sales of petrochemical products through commodity and energy exchanges, aiming to facilitate the supply of feedstock and stimulate production in downstream industries.

Last year, around 800 trillion rials of credit-based sales were recorded, and by the end of August 2024, more than 460 trillion rials had already been achieved, with the goal of further supporting the needs of downstream sectors through continued credit sales by petrochemical companies and holding groups.

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