02 July 2012 21:51 [Source: ICIS news]
CAMPINAS, Brazil (ICIS)--Both production and sales of chemicals in Brazil fell month on month in May, a trade group said on Monday.
Brazil domestic production of chemicals fell by 1.24% in May, while sales of chemical products fell by 0.14%, according to the Abiquim, a Brazilian chemical trade group.
Abiquim attributed the month-on-month decline to lower demand from the automobile and construction sectors.
“As a result of weak demand, some companies made programmed stops for maintenance,” it said.
In May, the price index rose by 4.93%, reflecting changes in the global market, especially for oil derivatives, Abiquim said.
For the first five months of the year, domestic sales of chemicals rose by 9.5% and production of chemical products rose by 5.85%, the trade group said.
From January to May, the price index was up 6.06% year on year, it said.
Brazil has adopted measures to stimulate consumption at the end of several industrial supply chains, with the intention of improving the overall economy, according to Abiquim’s statistics and economy technical director, Fatima Giovanna.
However, those measures did not generate the expected results because the nation needs more structural changes that would encourage Brazil's industry to restart idled capacity and increase production capacity, she said.
Such measures need to reduce production costs, which would allow Brazilian companies to be more competitive against overseas firms, Giovanna said.
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