APLA '11: Greek crisis, auto sector take toll on Brazil chems

07 November 2011 20:25  [Source: ICIS news]

BUENOS AIRES (ICIS)--The slowdown in Brazil’s chemicals demand in the fourth quarter stemmed partly from slower automobile production in the country and uncertainties caused by the debt crisis in Greece, market sources said on Monday.

The global crisis has reduced demand for exports from Brazil, including those of automobiles, while consumers in the country are also wary of spending because of uncertainties in global markets, a distributor said on the sidelines of the 31st Latin American Petrochemical Association (APLA) annual meeting.

"This is not just about Greece," the source said, also blaming the strength in the Brazilian currency for the slowdown in exports.

But Brazil’s chemical demand could improve in the first quarter of 2012 because companies will begin re-building inventories, which are very low right now, the source said.

Another distributor predicted chemicals demand, however, would not improve until the second quarter.

The Brazilian economy is expected to grow by 3.5-4.0% this year, at a slower pace than originally projected, the source said.

For 2012, the economy is also expected to grow by 4%, according to the distributor.

The 2011 APLA conference, in Buenos Aires, ends on Tuesday.

By: William Lemos
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