Introduction

Export of plastic raw materials to Turkmenistan is an important business opportunity for Iran, as the country has a large need for polymer imports due to limited domestic production capacity and the growth of the plastic industry. Iran, with its rich oil and gas resources and strong petrochemical industries, has been able to meet a large part of this need. Geographical proximity, low transportation costs, and diversity of production grades have made Turkmenistan a strategic destination for Iranian exporters.

In the current era, the plastic industry has become one of the pillars of the global economy; from packaging and agriculture to consumer and industrial products, polymers play a key role. Iran, due to its rich oil and gas resources and developed petrochemical industries, is one of the important suppliers of plastic raw materials to neighboring countries. Among export destinations, Turkmenistan has become one of the strategic markets for Iranian exporters due to its geographical proximity, political relations, and the need to supply raw materials.

In this article, we first review the framework of Iran-Turkmenistan relations, then present the terms of trade in polymer materials, popular grades, barriers and opportunities, the state of the Turkmen plastics industry, and finally the export outlook.

Iran & Turkmenistan Relations

Iran and Turkmenistan share a common land border and have long-standing economic relations. Trade between the two countries includes a variety of goods, from agricultural products to construction materials and technology. In the first half of this year, Iran’s exports to Turkmenistan have grown significantly, with non-oil exports to that country exceeding $57 million in the plastics sector during the same period.

These statistics indicate the growing importance of the trade relationship in the industrial and polymer goods sectors. At the same time, increased customs cooperation, improved border infrastructure, and bilateral negotiations have reduced export barriers.

Conditions for Export of Plastic Raw Materials to Turkmenistan

Export of  plastic raw materials to Turkmenistan depends on several key factors:

• Advantages of geographical location and land transportation: The land route from the northeastern provinces of Iran to Turkmenistan (such as North Khorasan and Razavi Khorasan provinces) has lower transportation costs than long-distance routes.
• Customs interactions and preferential agreements: Customs cooperation between the two countries and facilitating clearance procedures can reduce costs and export times. It is reported that Iranian and Turkmen customs officials have held talks in recent years to increase customs facilities.
• Quality, standards and technical compliance: Turkmen buyers are usually sensitive to the quality of grades. The imported polymer must be acceptable in terms of grade, purity and physical properties.
• Volume and packaging: Exporters must be able to offer shipments in various tonnages and comply with packaging appropriate for land or rail transport.

In 2022, Iran’s exports of “ethylene polymers in primary form” to Turkmenistan were reported to be around $12.95 million. This statistic shows that a significant portion of Iran’s plastic exports to Turkmenistan are basic raw materials, which is a good opportunity for large suppliers.

Iranian Highly Deemanded Polymer Grades in Turkmenistan

Based on a regional market analysis and a look at the needs of the Turkmen plastics sector, the following grades are in the highest demand:

1. High-density polyethylene (HDPE): for pipes, injection molded parts, tankers, and structural applications

• HDPE PE100
• HDPE EX3
• HDPE 7700M
• HDPE 3840
• HDPE 52518
• HDPE 52505UV
• HDPE F7000
• HDPE EX5
• HDPE 62N07

2. Light polyethylene (LDPE): for packaging films, wrappers, lightweight bags

• LFI2119
• HFI5110
• LFI2047
• LDPE 2420E02
• LDPE 2520E22

3. Linear Light-Distilled Polyethylene (LLDPE): For stretch films, industrial packaging, and applications where tear resistance is important.

• LLDPE 22B02
• LLDPE 22B03
• LLDPE 0209AA

4. Polypropylene (PP): Homopolymer and copolymer, in injection applications, household parts, automotive parts

5. Polymer masterbatches and additives: to improve color, anti-UV properties, increase strength and mechanical properties

These grades are in the highest demand in the Turkmen market due to their more general applications and variety of uses.

 

Most Polymer Goods Exported to Turkmenistan

Among the exported polymer goods, the majority are ethylene-based polymers (such as polyethylene) that are exported in their primary form. The other parts include:

• Semi-finished plastic materials
• Polymer films and sheets
• Semi-finished plastic parts
• Polymer packaging products

In world trade reports, goods such as “ethylene polymers in primary forms” (HS related) constitute a significant portion of Iran’s exports to Turkmenistan. The WITS report also showed that Iran was one of the exporters of cellular sheets and polymer tapes to Turkmenistan.

 

 

Does Turkmenistan Have Petrochemicals?

Yes, Turkmenistan launched the Kiyanly Polymer Plant in 2018, which has an annual production capacity of 381,000 tons of polyethylene and 81,000 tons of polypropylene, according to international reports. The facility produces polyethylene and polypropylene base materials, and part of its products is sold on the domestic market.

However, this capacity is still not enough to cover all domestic needs and industries such as packaging, film, automotive parts, etc. Therefore, Turkmenistan continues to depend on imports of plastic raw materials, and imports from Iran are often more economical for Turkmen manufacturers (compared to imports from distant countries, transportation costs are lower). So, although Turkmenistan has gas resources and some petrochemical units, its domestic production capacity does not meet all market needs. This makes the export of plastic raw materials to Turkmenistan from Iran fully justified.

 

International Transportation Routes of Iran and Turkmenistan

Possible ways of transporting goods between Iran and Turkmenistan for exporting plastic raw materials to Turkmenistan are:

Land transportation (road):

– The fastest and most widely used method for small to medium-sized shipments

– Lower transportation costs than long-distance methods

– Flexibility in route and delivery at borders

_ Route:

Iran side (Lotfabad border of Khorasan Razavi) Turkmenistan side (Akhal province)

Iran side (Bajgiran border of Khorasan Razavi) Turkmenistan side (near Ashgabat)

Iran side (Sarakhs border of Khorasan Razavi) Turkmenistan side (Sarakhs in Akhal province)

Iran side (Inche Borun Golestan border) Turkmenistan side (Dash Ghoz province)

 

Rail transportation:

– For heavier or high-tonnage cargo, it is a more cost-effective option

– There is a rail route across the common borders, if the infrastructure is complete. Usually, transportation is done from Tehran, Bandar Abbas, Mashhad, Incheborn, and Sarakhs stations.

Sea transportation (via the Caspian Sea):

– If the goods are transited by sea to the Turkmenbashi port

– Usually takes longer and is suitable for large projects

_ Route: Iran side (Amirabad/Anzali) and Turkmenistan side (Turkmenbashi port)

In most cases, land transportation is the dominant option for exporting plastic raw materials to Turkmenistan due to its speed of delivery, lower cost, and ease of clearance.

 

Important Indicators for Turkmen  Businessmen

Turkmen businessmen pay great attention to the following factors when choosing a supplier of plastic raw materials:

• Price stability and cost predictability
• Quality of the product grade and technical performance guarantee
• Durable packaging and adaptation to land transportation conditions
• Fast and timely delivery (deadlines)
• Flexibility in purchase volume (low to high tonnage)

Iranian manufacturers who can meet the above conditions will have a strong competitive advantage in the Turkmen market.

 

From which countries does Turkmenistan import polymers?

In addition to Iran, Turkmenistan meets part of its needs from China, Russia, Turkey and Saudi Arabia. However, Iran’s exports of plastic raw materials to Turkmenistan have a greater competitive advantage due to their proximity and lower transportation costs.

• Russia
• China
• Turkey

However, imports from these countries are higher due to the distance and transportation costs, so Iran has the largest share of imports due to its close geographical location and competitive prices.

The state of the Plastic Industry in Turkmenistan

The plastics industry in Turkmenistan is growing, especially in the field of packaging products, disposable containers and plastic pipes. This growth has increased demand for the export of plastic raw materials to Turkmenistan. There are more than 200 businesses in Turkmenistan active in the field of polymer products, which annually produce about 250 thousand tons of finished polymer products, including disposable containers, plastic parts, packaging and plastic sheets.

In different regions, workshops for the production of plastic pipes and parts are also operating. For example, in Dashoguz province, factories have been established for the production of HDPE pipes, plastic containers and polypropylene bags.

 

This growth indicates an increase in domestic consumption and an increase in demand for plastic raw materials. It is an opportunity for Iranian manufacturers to enter the market for finished parts and plastic products.

 

Conclusion

Export of plastic raw materials to Turkmenistan is an important business opportunity for Iran. Despite limited domestic production in Turkmenistan and the urgent need of the plastic industry for basic grades, Iran can take advantage of its geographical advantage, variety of grades and competitive prices. It is important for exporters to observe high quality, proper packaging, speed of delivery and flexibility in volume to be successful in the Turkmen market.

The future of the Turkmen plastic market shows high growth potential and there are huge opportunities for Iranian exporters who develop the right strategy.

 

Contact KPPlastics-Afshin Karami Trading Company

If you are planning to export plastic raw materials to Turkmenistan or want to operate in the Turkmen market of polymer products, our trading company is ready to provide expert advice, supply the required grades, carry out transportation and customs clearance. Contact us today to smooth the path for your polymer trade!