EPCA ’08: Price controls hurting Argentina chems

28 September 2008 14:25  [Source: ICIS news]

MONTE CARLO (ICIS news)--Price controls on Argentine petrochemical products are increasingly squeezing the margins of local producers, particularly those in downstream markets, a producer said on Sunday.

“The closer you are to the consumer, the more pressure you feel from the government to keep your prices down,” the source said on the sidelines of the European Petrochemical Association (EPCA) meeting.

Argentina is imposing price caps on the market due to concerns about the impact of rising inflation on its economy, the source said.

“It is not something new but it is worrisome because we don’t know how long it will last,” the producer said.

In addition to price controls, Argentine petrochemical makers are also faced with a long-standing energy crisis and lack of alternative feedstocks, sources said.

Some producers are operating at full capacity, but uncertainty about raw material availability inhibits new investment in the industry, one market participant said.

“This makes it difficult to expand production and any additional demand will have to be met with imports,” the source added.

To discuss issues facing the chemical industry go to ICIS connect

By: William Lemos
+1 713 525 2653

< previous article(ICIS Podcast: Chemical News Central 2 November 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly