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Players evaluate impacts of fire at Iranian utility provider

by ChemOrbis Editorial Team -
  • 21/09/2016 (15:00)
A fire broke out at Iran’s Mobin Petrochemical refinery complex in Assaluyeh on September 14, according to media reports. It was brought under control shortly after while leaving 4 people injured. Players are voicing divergent opinions about the possible impacts on supply following the incident which caused some Iranian petrochemical companies to halt operations given suspended activity at the utility provider.

In Turkey, which is an important export destination for Iranian PP and PE, a trader reported that he believes polyolefins supplies could be significantly affected due to the fire. “The fire-hit facility is a provider of steam, nitrogen, water and power for several companies in Assaluyeh. Although the facility was not damaged severely, as we heard from a few Iranian sources that there are concerns about output, particularly for PE,” he stated. Another large trader noted though, “The impact was minimal and the incident is over this week.”

Polyolefins players in both Turkey and Iran were out of the market given the Eid Holiday last week. Iranian suppliers were yet to be reached for confirmation about the latest status of petrochemical production.

A trader based in China reported that last week’s fire at Mobin Petrochemical caused several producers to shut their production plants as it supplies power and water to several petrochemical companies there. “Mehr Petrochemical, Jam Petrochemical and Arya Sasol Polymer Company had to shut their plants down. However, Jam was reportedly due to resume operations soon. Mehr was planning to restart this week while no details were available about Arya Sasol’s operations. We believe that this will not cause any significant impacts on the supply side,” opined the trader.
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