APLA ’09: Petchem outlook improves on emerging economies

08 November 2009 19:11  [Source: ICIS news]

MEXICO CITY (ICIS news)--The outlook for the petrochemicals industry has improved significantly from a year ago due in large part to the economic recovery in emerging countries, market sources said on Sunday.

“It is the south pulling the north,” a Brazilian consultant said, referring to the slower pace of recovery in the developed world.

Brazil, China and India are the countries leading the way out of recession, the source said on the sidelines of the 29th Latin American Petrochemical Annual Meeting (APLA) in Mexico City.

A large Brazilian petrochemicals producer agreed with that outlook, saying prospects for the industry are much brighter now compared with a year ago.

Demand for petrochemicals in Brazil is firm, the source said, pointing to the resilience of the economy in the last few months.

Brazil grew by 1.9% in the second quarter, compared with the previous three months, making it one of the first countries to emerge from the latest financial crisis.

Demand for petrochemicals in Brazil will remain strong in the coming years, as the country will host the World Cup in 2014 and the Olympics Games only two years after that.

Brazilian demand for resins is expected to grow by 5-6% in the next six years, partly supported by projects related to those events, according to projections by a local producer.

The 29th Latin American Petrochemical Annual Meeting continues through Tuesday.

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By: William Lemos
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