Amid the global outbreak of the novel coronavirus, exports of petrochemical products from Iran are expected to drop sharply in 2020.
For knowingly engaging in the purchase, acquisition, sale, transport, and marketing of petrochemical products from Iran, the US in March imposed sanctions on seven entities including Chinese trading and shipping companies. Because China and India are the largest buyers of Iranian products, exports of chemicals from Iran will drop sharply in 2020. While 73 percent to China, about 21 percent of Iranian exports in 2019 were directed to India.
After the reinstatement of oil-related sanctions on the country in November 2018, exports from Iran dropped 28 percent in 2019 compared to the previous year. Accounted for 77 percent and 11 percent respectively of the total volume exported in 2019, Methanol and MEG (mono ethylene glycol) are the major products exported from Iran.
Due to difficulties in obtaining shipping insurance, the chemicals export from Iran is also predicted to be affected by the higher freight costs. As restrictions imposed by the countries on the movement of goods to contain the spread of the pandemic, the coronavirus outbreak is also expected to hit Iranian exports.
