APLA ‘08: Crisis spares some Latin countries

16 November 2008 16:17  [Source: ICIS news]

RIO DE JANEIRO (ICIS news)--Most countries in Latin America are reeling from the global financial crisis but some are doing better than others, a Chilean distributor of plastic resins said on Sunday.

While sales in Peru and Uruguay are booming, things were not so bright in Ecuador, the source said on the sideline of the 28th Latin America Petrochemical Association (APLA).

Chile has experienced a slowdown mainly because buyers were buying minimal amounts of plastic resins while they waited for prices to drop further, the source said.

“We all went through some tough times getting rid of expensive inventories, but after the initial shock, demand is returning at levels compatible with seasonal expectations,” the distributor said.

While this scenario was relatively mild for distributors, local producers were having a tough time to minimise losses on products made with expensive raw materials.

Producers were also facing steep competition from substantially cheaper Asian product offered to the region, and in particular to the Pacific coast of the continent, according to previous statements from Chilean polypropylene (PP) producer Petroquim.

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By: George Martin
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