Petchem Credit Sales Surge by 58% in July 2024

Petchem Credit Sales Surge by 58% in July 2024
(Monday, August 19, 2024) 16:53

TEHRAN (NIPNA) - Credit sales of petrochemical products in Iran's commodity exchanges saw a significant 58% increase in July 2024, reaching approximately IRR 95 trillion, up from IRR 60 trillion in the same period last year. This rise reflects the National Petrochemical Company’s (NPC) strategic efforts to support downstream industries.

According to NPC's Downstream Industry Development Management, 37% of the total petrochemical products sold in July 2024 were through credit sales. This significant growth underscores the company's commitment to bolstering downstream industries, which play a crucial role in completing the petrochemical value chain.

The increase in credit sales is part of NPC’s broader strategy to foster balanced growth across the petrochemical sector, aligned with upstream industry developments. This initiative aims not only to meet domestic demand and reduce raw material exports and imports of petrochemical products but also to boost employment, generate foreign exchange, and enhance Iran's standing regionally and globally.

In line with the government’s policies under the 13th Administration, NPC has prioritized the balanced development of the petrochemical industry. Since last year, the company has been actively identifying and addressing production bottlenecks in downstream industries, particularly those operating below capacity or facing recession.

One of the critical challenges identified in these industries is the need for working capital and liquidity for purchasing raw materials. To address this, NPC has targeted an increase in credit sales of petrochemical products in commodity and energy exchanges, utilizing all available resources. This strategy is aimed at revitalizing production units and ensuring the steady supply of feedstock needed for downstream industries to complete the value chain.

NPC continues to encourage petrochemical companies to expand their credit offerings, which is expected to significantly contribute to the balanced development of the industry and the completion of the value chain.

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