12 November 2012 19:06 [Source: ICIS news]
RIO DE JANEIRO (ICIS)--Brazil-based Braskem expects 2013 polyolefins demand to increase over 2012 because of government incentives as well as consumer and industrial demand, an executive said on Monday.
Overall, Brazilian polypropylene (PP) and polyethylene (PE) demand should each grow by 4-5% in 2013, said Luciano Guidolin, executive vice president for polyolefins and renewables for Braskem. He made his comments on the sidelines of the Latin American Petrochemical Association (APLA) annual meeting.
That compares with expected growth rates of 1% for PE demand and 3% for PP, Guidolin said.
Braskem expects higher demand because the Brazilian economy is expected to expand at a faster rate in 2013 − by 4% in 2013 versus 1.5% in 2012.
Braskem expects polyolefins demand to increase in the nation's automobile, consumer goods and durable goods sectors, Guidolin said.
The Brazilian government is also taking steps to reduce taxes on labour, to eliminate import incentives and to reduce energy costs, Guidolin said.
Moreover, for more than a year, the Brazilian government has introduced several stimulus measures.
For example, Brazil has lowered interest rates from 12.50% in July 2011 to a record low of 7.25%.
Braskem has already seen the effects of these measures, and they should continue to benefit the economy, Guidolin said.
Longer term, the nation should benefit from a logistics programme recently announced by the government, he said.
The programme, worth reais (R) 133bn ($65bn, €51bn), should improve the country's highways and railroads.
The APLA conference ends on Tuesday.
($1 = €0.79)
($1 = R2.05)
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