How Mercopars began

Mohsen Sohrabi
Mohsen SohrabiManager of Mercopars

The idea of Mercopars took shape when I started thinking about a trading bridge between producers in Iran and the Middle East and buyers in South America. I saw that market as a good opportunity for the products I source and sell. My own interest in Latin America also played a part in choosing this path and in shaping Mercopars’ identity.

Today I run Mercopars with Iran’s domestic market as its main focus. Our export range is smaller than what we offer at home. Widening it, and building trade with buyers in South America, are among my priorities as Mercopars moves forward.

Mohsen Sohrabi, manager of Mercopars

At Mercopars I handle the relationship with producers, review purchase requests, negotiate and coordinate deals. My main field is sulphur, fertilizers and chemicals.

I assess every request from what I know of the product and the market: what specification the buyer needs, which supply route fits it, and what has to be clear before an agreement. I write my sulphur market analysis from the same angle, looking at tradable supply, demand, price and freight.

Where the supply comes from

Each product has its own supply route.

Powdered sulphur
Mercopars is the direct sales representative of several powdered-sulphur producers, and supplies raw material to many of them.
Granular sulphur
Supplied from state and private refineries, through the commodity exchange in Iran or by direct purchase.
Urea
Direct supply from the Khorasan, Pardis, Shiraz and Lordegan petrochemical plants. Granular urea is offered for export.
All export products

Services to the buyer

  • Understanding the purchase

    We clarify your required product, quantity, specification and delivery point.

  • Supply route and documents

    We check your request against the producer’s information and the documents available for the product.

  • Inland transport

    If it is part of the agreed deal, we coordinate transport inside Iran from origin to the border, the port or the delivery point.

  • Documents and loading

    We coordinate documents and loading within the responsibilities agreed in the deal.

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How I read the sulphur market

A few points from my published analysis of the sulphur market.

  • Physical supply is not tradable supply.

    A producer having sulphur does not mean the spot market can buy it. Long-term contracts, routes and loading ports decide what is really available.

    Read the analysisPublished

  • Buyers’ ability to pay set the ceiling, not scarcity.

    In September sulphur was still scarce, yet prices fell across regions. Consumers who could not pay shut capacity, and that set the ceiling. Because the cut came from price, I see it as reversible.

    Read the analysisPublished

  • The scarcity premium has moved to the loading port.

    Buyers pay for sulphur they can actually lift. A tender loading outside the Strait of Hormuz cleared well above the regional monthly price, while sulphur blocked inside it stayed in storage.

    Read the analysisPublished