09 February 2010 00:12 [Source: ICIS news]
By: Hellen Berger
SAO PAULO (ICIS news)--Brazil’s petrochemical market could grow by over 12% in ?xml:namespace>
According to analysts, the petrochemical market historically grows by twice the GDP rate.
Brendler said in Portuguese that
In emerging markets, the petrochemicals sector can even reach growth levels of up to three the GDP and be consistent, according to the analyst.
Domestic markets such as
Brendler said imports to
Also, the down cycle of the petrochemical industry is expected to continue to around 2011-2012, Brendler said. For producers, that is the best time for investments and production capacity expansions.
“Plants need to be prepared for when demand and price levels go back to normal,” he added.
According to Brendler and other petrochemicals analysts, that is why we are seeing a strong consolidation process in
The Brazilian petrochemicals sector is undergoing a period of mergers and acquisitions (M&A) in order to compete more effectively in the global markets.
Major producer Braskem recently acquired rival Quattor and announced the purchase of Sunoco assets.
“The idea is to strongly increase capacity and lower costs to compete globally,” said Brendler.
However, the price factor could definitely be a challenge, according to analysts.
“We believe that when the sustainable growth and volumes are resumed, following the down cycle phase, prices will tend to normalise due to the
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