Asian players cautiously monitor possible supply issues after Iran-Iraq earthquake

A 7.3 magnitude earthquake rattled northern border region between Iran and Iraq on Sunday, 12 November 2017, killing at least 135 people and injured hundreds other. Most casualties were in Iran’s western province of Kermanshah while adjacent villages suffered power cut and disturbed communications system.

Asian players are watching out for any potential impact of the devastating quake on the supply with a Chinese trader said, “At the moment, we have not received any notification from Iranian suppliers regarding the impact of the disaster. We are still on the watch out mode.”

Kermanshah province houses several major petrochemical plants such as Kermanshah Petrochemical Co., Kermanshah Polymer Company and Bistoon Petrochemical companies. However, except Kermanshah Polymer Company produces 300,000 tons/year of HDPE blow moulding and injection grades, others are more on chemical sector.

Supply for HDPE from Iran has been relatively tight in Asia over the past several months due to production disruption in the country resulted from a major gas pipeline leaking. In recent weeks, Chinese buyers have reported mass cancellation of Iranian HDPE cargoes on the back of prolonged delay in shipment and changes in price setting.