Market sources in China revealed to SSESSMENTS.COM that shipment for import PE cargoes from a key PE supplier to the country, Iran, has been delayed as new US sanctions against Iran take hold. According to the sources, there are 6 Iranian vessels including 1284, 1285, 1286, 1287, 1288, and 1289 already docked near Shanghai and Qingdao ports, but all of these vessels are not allowed to enter the ports due to the sanctions from the US. As such, market players are concerned if the supply for Iranian HDPE Film and LDPE Film would be tight in the days to come since most remain unsure when these vessels will be allowed to enter the ports.
The United States, one of the world’s largest economic powers, has imposed restrictions on activities with Iran under various legal authorities since 1979, following the seizure of the US Embassy in Tehran and the subsequent hostage crisis. As relations continued to simmer between Tehran and Washington, Trump’s administration has expanded sanctions on Iran’s shipping industry. US sanctions on a large Iranian shipping company, Islamic Republic of Iran Shipping Lines (IRISL) and its Shanghai-based subsidiary, E-Sail Shipping Company Ltd came into effect on Monday, June 8. Previously, Washington accused both companies of helping Iran develops its ballistic missiles programs, which was in contravention of the United Nations (UN) sanctions.
The sanctions, announced by the US State Department in December last year, came into effect after a 180-day grace period to allow the commercial and maritime industries who worked with the two companies to find alternative shipping methods. A total of 121 tankers, vessels, and containerships were included in a listing released by the US Treasury Department’s Office of Foreign Assets Control (OFAC). SSESSMENTS.COM was informed that the US government also urged government authorities around the world to investigate all activity in their ports associated with the two Iranian shipping companies and to take appropriate action to put a halt to it.
For the outlook, market sources voiced out to SSESSMENTS.COM that the import PE prices would find some support since the volumes of the delayed Iranian materials is high.
