APLA '11: PVC demand in Brazil is expected weak through Q1
07 November 2011 19:58 [Source: ICIS news]
BUENOS AIRES (ICIS)--Polyvinyl chloride (PVC) demand in ?xml:namespace>Brazil is projected to remain weak through the first quarter of 2012 as potential buyers wait for lower resin prices and draw down from ample inventories, an industry source said on Monday on the sidelines of the 31st Latin American Petrochemical Association (APLA) annual meeting in Buenos Aires.
After the seasonal drop in business between the 2011 year-end holidays and Carnival, market participants had expected PVC demand to pick up, but business has remained slow the rest of the year. No improvement is projected through March 2012, the source said.
Even infrastructure construction for the soccer World Cup in 2014 and the 2016 Olympics to be held in Brazil has not improved the outlook for the domestic PVC industry, according to the source.
Despite moderate downstream demand, Brazil imported large PVC volumes after an antidumping duty was lowered from 16% to zero, following a power outage affecting large areas of Brazil early in the year. The blackout resulted in lower production rates for domestic resin makers, prompting easing conditions for PVC imports.
After large volumes of PVC entered Brazil, the antidumping duty was raised back to 16% for US material, although it is zero for product from Europe and Taiwan. The antidumping duty for PVC is at 2% for material from some South Korean suppliers, but higher for others.
Brazilian import duties for PVC stand at 14%.
The 2011 APLA conference ends on Tuesday.By: Ron Coifman+1 713 525 2653
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