NPRA '11: 'Hot' Brazil economy letting BD hikes pass through

28 March 2011 17:40  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS)--Buoyant economic conditions in Brazil are helping companies pass on rising prices for butadiene (BD), a downstream BD consumer said on Monday.

"Brazil is hot," the buyer said on the sidelines of the International Petrochemical Conference (IPC).

The buyer is benchmarked to US Gulf butadiene pricing, which has been rising sharply as the preference for lighter cracker feeds has choked off supply of the ethylene co-product.

Producers have nominated increases of up to 20% for April US Gulf contracts, and downstream US buyers are fretting about the sustainability of downstream businesses as further increases are already being talked about for May.

The source said Brazil's business confidence has been helped by the election of Dilma Rousseff as president in October 2010 to succeed Luiz Inacio Lula da Silva.

Although they are from the same political party, Rousseff is perceived as more favourable for private enterprise than Lula, a populist.

"The economy will be good for the next few years at least," the source said.

For more on BD visit ICIS chemical intelligence
Paul Hodges studies key influencers shaping the chemical industry in Chemicals and the Economy

By: Stephen Burns
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