30 August 2012 22:27 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--Brazil’s production and domestic sales of chemicals in July increased year on year by 6.7% and 5.9% respectively, industry association Abiquim said on Thursday.
Chemical production in July was 10.8% higher than in June this year, with domestic sales rising by 10.4% month on month, Abiquim said.
Accumulated production and sales from January to July was up year on year by 4.9% and 8.3% respectively, the strongest results for this particular seven-month period for five years, Abiquim said.
Capacity utilisation in the industry rose from 74% in June to 83% in July. July's figure was 1 percentage point higher than the same time last year.
July’s results marked a significant improvement on what had been a disappointing second quarter, Abiquim said.
Production and sales volumes in July had returned to those levels recorded in the first quarter of 2012, the association said.
“Some clients who had been waiting for the drop in international prices to be reflected in Brazil started buying again in July,” Abiquim said. “These results bring some relief.”
Abiquim said that government measures to stimulate the chemicals industry were still needed.
The association was confident that the government would soon announce reductions in electricity tariffs for the chemical industry.
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