Faraz Oil Corporation
Close this search box.

The Destructive Effects of Iraq on Bitumen Market

The Destructive Effects of Iraq on Bitumen Market

In this article, we will discuss the destructive effects of Iraq bitumen on Iran’s bitumen market. Stay with us

One of the industries that has a high foreign  exchange rate is gas exports in Iran .

It faces a lot of challenges every year such as unfair competition of Iraq poor quality bitumen supplier compared to Iranian pitch because of the prohibition of transit of this substance on Iranian soil.

When Iraq transports tar through borders and lines of communication and offers it at a reasonable price in Iran, it becomes impressive for us

Many domestic buyers prefer Iraq bitumen over Iranian.

If you stay with us until the end, we will explain to you the destructive effects of Iraq pitch on the Iran tar market closely

Iran exports 5% of this material to global markets according to oil and gas major events agency reports.

It produces 6 million tons of tar  annually and exports 4 million tons .

one of the main foundations of international markets for exporting this  Petroleum product is Iran.

The reasons for attracting customers in Iran include: geographical conditions of the country and the unique characteristics of crude oil.

Thus We can say that status of this material in exports and imports to countries is ideal.

The Pamage of Iraq Pitch Through VR to The Domestic Market to the Export Market for It in Iran

When VR Iraq entered in the country in previous years, poor quality tar  was produced in Iran.

It has inflicted serious damage on Iran’s brand and export market.

But Iran has invested in Iraqi Kurdistan to produce and export this product in recent months.

They export it directly from the Irans’s southern ports to Turkey, Georgia, Uzbekistan and India -Africa trades.

Now,  they import 20,000 to 30,000 tons of VR Iraqi to Iranian ports every month and export it to other countries.

People know it as Iran pitch with the low- quality so, Iraq tar has inflicted destructive effects on the Iranian market.

It troubled the bitumen industry.

What is VR?

VR or vacuum rhodium is refined in two ways.

people purify part of it in the atmospheric tower and another part in the vacuum.

They  obtain vacuum rhodium from vacuum deposition.

One of the notable raw materials is vacuum rhodium.

It is inappropriate for the production of pitch  because of fashion flash, flare point, lack of quality as well as lack of proper permanence; therefore, the Iraq tar that contains this material is not standard and has a low quality.

We can say that they combined VR with Iranian tar.

People export it to other countries with label of Iranian brand and it causes heavy damage to the brand.

VR Import Problems to Iran

Because people import VR – which is inexpensive  and they use it in applications of hydrocarbon – legally so, some companies have used it in the production of tar  process.

People supply it to all over the world with the name of Iranian quality pitch .

It leads to the disrepute of Iranian products.

Standard tar companies can’t compete with them because their  final product is more expensive than Iraq bitumen.

If this material is more impure, it’ll be cheaper.

One of the reasons for attracting unprofessional business to VR is the non-transparent on the state market so that  they can produce a substance like it.

Although managers of different companies do not specialize in this material, they select mineral thermal oil.

Bitumen Import in Iraq

They load Iraq pitch in the same country and import it to Iran through the border merchant.

People export gasoline subsidies to Turkey.

This has injured in northwestern Iran and Iran tar producers.

One of the annoying factors is the Iraqis’ use of Iran’s Gasoline subsidies in order to remove Iran suppliers from the Turkish market.

Bashmaq exports approximately 800 tons of Gasoline subsidies in balk barrel to Turkey, so we must not allow Iraqis to use it.

Traders and producers can’t compete with Iraq poor quality tar in order to reach export target markets.

Problems Caused by Lack of Exported Iran’s Bitumen to Turkey

They banned tar imports from Iran to Turkey in the last year; therefore,  part of Iran’s export market was destroyed .

It restricted Turkish exports.

Of course Iraq has continued to export from Iran’s transit routes.

That crosses easily the Turkey- Iran border using from cheap fuels in Iran and has a large portion of the exports of this Iranian substance.

Iran has provided special facilities for producers such as Providing cheap fuel and roadways in order to export Iraq pitch.

But because this Iraq product does not have the necessary standards and customers among the world; therefore, they export it with the label of the Iranian brand.

It has caused a lot of damage to our country’s export market .

That  has caused the majority of buyers think differently.

Now we are paving the way for the Iraq’s bitumen 60/70 export.

We need to prevent any kind of VR into the country so that Iraq bitumen can’t destroy Iran tar market.

We hope that this Iranian product can maintain its own purpose and also known as a high-quality brand.

Rate this post

This article was useful? Please share with others


Leave a Reply

Your email address will not be published. Required fields are marked *

Table of Contents