By: Jayant Mukherjee -- Senior Client Partner - Packaging
30 June, 2016
With the removal of economic sanctions on Iran by the UN on July 20, 2015, the country has become a landmine of opportunities. The sanctions had almost completely restricted Iran from engaging in international trade. These sanctions were enforced by the UN, the U.S., and EU countries in the early 2000s to prevent Iran from pursuing nuclear power.
As the Iranian economy has become majorly dependent on the sale of indigenous crude oil (with 158 Mbd of reserves~ 4th largest globally) and related products, lifting of these sanctions will allow Iran to contribute ~1 mbd to the global oil market. The re-entry of Iran in global oil market will flood the already over-supplied market; OPEC may have to step in with measures to control the pricing.
Removal of these sanctions will also see changes in petrochemical sectors, as Iran is the second-largest exporter of petrochemical products in the Middle East after Saudi Arabia. Petrochemicals account for ~2 percent of Iran’s GDP and ~20 percent of non-oil exports as of 2015. The polyolefins sector is also expected to undergo some correction. The increase in methanol supply will impact polyethylene and polypropylene markets.
In this whitepaper, we discuss the opportunities that Iran can provide, the impact of global trade on its own economy, as well as the global economy.
This significant event will also hugely boost domestic manufacturing and packaging sector with increase in demand for Iranian products across the globe.
Introduction – Why is everybody talking about Iran?
Domestic Packaging Sector to Boom
Downstream demand and way ahead
Source: barsjournal.net, just-food.com, Industry Experts, Beroe Analysis