Iran (IMNA) - According to the Iranian ambassador, Hossein Gharibi, commerce between the two nations totaled $6.5 billion in the previous year.
Iranian urea, a petrochemical fertilizer product, is widely imported by Brazil.
According to Gharibi, urea fertilizer was Iran's top export to Brazil last year, while corn, soybeans, and meat were its main purchases from the South American copuntry.
Brazil is an oil-producing country, with an estimated daily output of 2.9 million barrels. However, the country faces numerous challenges in its downstream refining and product sectors.
Last year, Brazil imported $6 billion in gas. It also relies on imports in the petrochemical sector.
"Brazil needs to import up to 80% of its chemical fertilizer needs, which are estimated to be 8-10 million tonnes per year," Gharibi added.
Brazil is another successful market for Iranian polymers. The envoy claims that although there is a market for up to $11 billion worth of the materials, the nation imported plastic polymers worth $6 billion last year.
The Brazilian urea market, however, presents difficulties for Iranian traders.
Despite being a significant producer of urea and having a sizable consumer market in Brazil, Gharibi remarked, "We do not have traders who can supply the product from origin to destination."
"Since Brazilian customers are used to purchasing their goods at ports, it is a significant challenge for us to have traders who can purchase the product from the Iranian manufacturer and deliver it to the Brazilian customer. Petrochemical products in Iran are typically offered to buyers through tenders and at the best price," he added.
According to Gharibi, traders face a significant level of risk while shipping urea goods to Brazil because of the dramatic price swings.
"Therefore, it is imperative to think of a solution inside the country to solve this problem, such as calculating the price at the time of delivery or finding mechanisms through which the potential loss of the trader can be greatly reduced."
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