16 November 2008 21:58 [Source: ICIS news]
By Greg Holt
RIO DE JANEIRO (ICIS news)--Latin America has potential for growth in the petrochemical sector, but the next few years will be a challenge as the world enters a period of global recession, an industry consultant said on Sunday.
Abundant crude oil reserves, a large and fast-growing population, and increasingly stable economic and political systems will combine to strengthen ?xml:namespace>
Meanwhile, regional leader
However, he said
Capacity expansions that are now coming online around the world, funded by the cyclical upturn in petrochemical prices, will be certain to exacerbate an already-grim demand climate, Eramo said.
For example, he said more than 9m tonnes/year of new ethylene production capacity will come online in the
“It couldn’t be timed worse in terms of the global recession,” Eramo said.
Capacity expansions in ethylene and other markets will cause producers to reduce their production rates, Eramo said, adding that plant closures are likely in slower-growing markets such as
Yet North American and European producers will continue to find export opportunities in developing markets, and the Middle East plant construction boom will be limited over time by the availability of feedstocks, Eramo said.
“Eventually the tidal wave of capacity added in the Middle East will slow and investment will be needed in other markets, such as
The conference opened on Sunday and ends on Tuesday.
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|