15 August 2011 20:45 [Source: ICIS news]
SAO PAULO (ICIS)--Brazil-based Braskem does not expect third-quarter resin sales to meet earlier forecasts, although they should still increase moderately over the second quarter, the company’s CEO said on Monday.
Braskem’s CEO Carlos Fadigas said during a conference call with analysts that third-quarter resin sales should increase because of seasonality. However, growth has been weak so far.
Typically, Braskem's resin sales grow about twice as fast as the nation's GDP.
According to Fadigas, resin sales for the first half of the year did not meet the expected growth rate of 7.8%. In the first half of 2011, Braskem’s total resins sales in volumes grew by 3% year on year because of exports, according to the company.
Braskem domestic sales of resins reached 366,000 tonnes in the second quarter, roughly unchanged from the previous quarter, as utilisation rates for the company's plants recovered from recent drops.
Brazil’s thermoplastic resins market grew by 2% in the second quarter, reaching 1.2m tonnes, impacted mainly by the slower local industrial activity and international price volatility, according to the company.
So far, Braskem has not reduced resin prices in Brazil to stimulate sales, and the company has been pricing its products based on international resins prices.
At the noon trading at the Sao Paulo stock exchange, Bovespa, Braskem’s shares were up 3.7%.
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