As per recent information, Iranian giant Tabriz Petrochemicals is going to start its new Polypropylene (PP) production unit in coming Iranian financial year, which will further boost the overall output of Middle East. Middle East is the largest supplier of PP and HDPE to the global market, where Saudi Arabia leads among all countries. As per ChemAnalyst, this new production unit having capacity of 30,000 MT/year will eventually lead into surplus inventories in the regional market, and boost supplies to neighbouring Asian nations.

Apart from this new production unit, other plant of HDPE with capacity of 310,000 MT/year is on the way to boost supplies of HDPE across regional market. This new capacity may start operating within next 2 years, where the deal was signed two years back between Petrochemical Research and Technology Company (PRTC) and Tabriz Petrochemicals company (TPC). Furthermore, as per the deal, PRTC will provide all the intelligence and indigenous technology to produce HDPE to TPC, where hardware as well as software also clubbed under the deal. This deal was the landmark and most important step for the ambitious 4-year plan to double overall production capacity of TBC complex. One of the most important fact about this project was its viability and effectiveness on the country’s Economy, as it would boost the output, generate large revenue and prevent hundreds of million dollars leaving the country.

As per ChemAnalyst Analysis, this addition will ultimately boost supplies HDPE from Iran to other Asian and Middle Eastern nations like China, Turkey, Uzbekistan, Azerbaijan etc. However, despite surplus inventories, pricing dynamics for the product shall not decline and would follow the path of market price.