With the onset of military conflicts between the United States and Israel and the Islamic Republic, Iran's petrochemical industry, as one of the main pillars of the country's economy, has suffered the most damage, with parts of it becoming semi-closed or closed.
Production Decline and Upcoming Challenges
Over the past three weeks, this industry has faced a noticeable decline in production; a decrease that is mainly due to the restriction of sales and exports of products and also the halt of activities in downstream industries.
Economic experts warn that this trend is not only not short-term, but it could have long-term consequences for this industry, especially in the coming year. Reduced production, disruption in the supply chain, and recession in related industries are among the factors that will affect the financial performance of petrochemical companies in the coming months.
Structural Changes in the Coming Year
Studies also indicate that in 1404, following the intensification of social crises and the occurrence of two wars, including the twelve-day war and recent conflicts, the cost and revenue structure of petrochemical companies has undergone significant changes. Increased operational costs, especially in various areas, alongside reduced export and currency revenues, have put additional pressure on these companies.
