Petrochemical

The connection between the petrochemical markets has turned the world into a connected network, so that each region meets the needs of other regions and meets its needs through the products of other regions. For example, the Middle East is located between the markets of East Asia and Europe and plays the role of supplying raw materials for them; Europe produces advanced polymeric materials, North America exports services and technical know-how, and China exports consumables such as films, bags, etc., which enter the North American and European markets.
Thus, the petrochemical industry can be called a completely global industry, which, as the process of globalization continues, the position of different regions in it becomes stronger.
Market transformation is a significant issue in the marketing of petrochemical products that has intensified in recent years. Among these developments, the following can be mentioned.
Decreased growth in Japanese, American and European markets due to environmental and recycling issues
– Increasing market expansion of China, Malaysia, Iran and Saudi Arabia due to population growth and GDP growth potential
– Saturation of the consumer market in some countries such as Singapore
– The emergence of pristine and untouched markets such as India with growing needs due to the development of industries such as construction and electronics
– Extensive conversion of countries with hydrocarbon resources to the production of base materials
“Norton, commercial director of British Petroleum, said:
The question of how to appear successful in the fierce competition of the petrochemical market.
Obtained the appropriate added volume, summarized in the following cases:
– Feed points
Ability to produce on a large scale
– Pioneering technology
– Proper distribution networks
– Proper marketing and customer retention
According to him, in order to dominate the market, he had to have power in all the above cases. Just having one or more items is not enough and over time, it will take the market out of the hands of the manufacturer. Therefore, examining each of these cases and identifying the strengths and weaknesses in it is essential for market dominance.
Before entering the field of petrochemical exports, a company must consider many points and conduct comprehensive studies in the field of international markets. These studies and information should be done in the following areas:
Customs tariff of the country of sale
Quota limit (the quota that a selling country permanently adopts for some of its political and economic allies
Non-tariff restrictions, including non-compliance with customer standards
How trade relations with the country of the sales party
The extent to which economic and security infrastructure has been developed for the operation and delivery of products and political risks and the risk of changing the policies of governments that are customers of products
Considering the economic situation of the selling countries (trying to export petrochemical products to countries with economies based on the export of raw materials, as opposed to exporting these materials to countries that are becoming industrialized and above those countries with industrial economies that produce consumer and final goods) , Are very different from each other.
One of the best ways to enter these markets is to establish strategic links with local companies or companies that dominate the market. By connecting with such partners, the products can be sold locally in the market under the name of a reputable company. For example, partnering with East Asian countries, which have a major market share and are culturally similar to China, will lead to a more successful entry into the Chinese market. This partnership also has significant benefits for these countries; Because Iran’s use of natural gas feed compared to naphtha feed used by East Asian countries will reduce the cost of their products
In the early twentieth century, crude oil and natural gas found a special place for raw materials in the manufacture of many human needs. Before that, oil did not play such a role in human life. Today, petroleum products have important applications in society. For example, they play a key role in the construction of many of the vehicle parts required; In addition, these products have been fueling these devices for many years. At present, useful products such as plastics, synthetic rubber, adhesives, solvents, fertilizers, drugs, additives and explosives are produced using the petrochemical industry.
Petrochemical industry in:
• Colors
• Car
• Paper production
• packing
• Pipe construction
• Primary metals
• oil refining
• Electrical appliances
• Household goods
• Medical Equipment
• detergents
• Building Materials
• Clothing and textiles
• Raw materials for medicines, even antibiotics
• Manufacture of many parts in agricultural products and service industries
• Building the internal components of guided missiles, astronauts and satellites and supplying them with fuel plays a valuable role.

In addition, polymers and plastics, polyethylene, polypropylene, polyvinyl chloride, polyethylene terephthalate, polystyrene and polycarbonate are among the products that are made of petrochemical materials.
Division of Petrochemical Industries
Upstream units: In oil and gas refineries, the saturated or unsaturated linear light hydrocarbons in oil or gas are separated from the rest of the hydrocarbons and sent as feed to the base units.
2. Basic units: In olefins, aromatic units and chemical complexes, raw materials are converted to basic materials such as ethylene and propylene for intermediate units.
3. Intermediate units: From the basic materials, they produce the feed of the final units.
4. Final units: In these units, end-of-chain products are produced and marketed.
5. Downstream units: In these units, the final petrochemical products are converted into consumer products such as synthetic fibers, plastics, rubber and so on.

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