03 January 2013 20:44 [Source: ICIS news]
HOUSTON (ICIS)--The outlook for ?xml:namespace>
For this year, the Brazilian economy will likely grow by 1.0%.
“Clearly this year, it has not performed to expectations,” said Bob Bauman, president of US-based consultancy Polymer Consulting International. “I don't know if it will recover fully in 2013.”
Not only will Brazilian producers contend with a sluggish economy, they will also deal with competition from US producers.
Those imports, in fact, are one of the reasons why the Brazilian government recently increased tariffs on plastics, he said.
Such a scenario benefits neither Brazilian resin producers nor plastic processors, he said.
For the Brazilian economy in general, the government has introduced several stimulus measures, including a programme for infrastructure.
Despite the outlook for slower growth, an all-time high was recently reached by the nation's benchmark stock index.
The country is already benefitting from the advent of shale gas in the
Meanwhile, to facilitate natural gas imports from the
The so-called Pact for
Buhler-Vidal warned that newly elected presidents typically have a small window through which they can push ambitious reforms.
"He has 90 days to do whatever big changes he is going to do," Buhler-Vidal said. "If it doesn't happen, it will not happen."
Regarding energy reform, the deal ruled out the privatisation of Pemex, the state-owned energy and petrochemical producer. Plus,
As it stands, Pemex lacks the resources to undertake such a large project. Instead, the company is concentrating on oil production.
The country should be able to benefit from its own resources, Buhler-Vidal said.
For Mexico's petrochemical industry, future projects may follow the model set by Ethylene XXI, which is being developed by Braskem and Grupo Idesa.
Pemex will supply feedstock ethane.
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