19 November 2007 17:27 [Source: ICIS news]
BUENOS AIRES (ICIS news)--The global petrochemical industry is late in the upcycle, but a collapse in margins is unlikely as demand will remain strong, the head of a US industry consultancy said on Monday.
“There is significant new capacity on the horizon - it is not just a pipe dream. It is just a matter of time before the industry enters an oversupply situation,” said CMAI president Gary ?xml:namespace>
“However, the balance of positives and negatives in the global economy is still positive.”
Consumer buying power in the developing world is increasing, and that will prop up profitability to some extent, said
“The good news is that consumer demand will remain strong, especially in the BRIC [
“As much as 75% of petrochemical production is for non-durable goods.”
And despite the wave of new capacity expected to come on stream in
For the Latin American countries,
“There is still an opportunity to supply polyethylene to the local market, but the political environment needs to shift from a short-sighted focus of cashing in on hydrocarbon resources to a long-term focus on developing value-added chemicals,” he said.
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