Brazil plastics production falls 0.4% in 2012

05 February 2013 20:32  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--Brazil’s plastics production decreased last year by 0.4% compared with 2011, the Brazil Plastics Industry Association (Abiplast) said on Tuesday, citing a downturn in some segments of the plastic sector.

Abiplast pointed to a slump in the production of plastic laminates in particular, which was down by 6.7%, while production of plastic packaging increased slightly by 0.4%.

Plastics production in December fell by 12.6% compared with the previous month, the group said. The drop was due to a downturn in all segments of the plastic sector.

Domestic consumption of processed plastics in 2012 stood at Brazilian reais (R) 59.1bn ($29.7bn, €22.0bn), up by nearly 9% from R54.4bn in the previous year, Abiplast said.

Exports for the year totalled $1.3bn, down by 13% from $1.5bn in 2011, while imports increased by 6% to $3.6bn, the association said.

As a result, the processed plastics sector accumulated a trade deficit of $2.25bn in 2012, an increase of 20% compared to 2011.

Abiplast recently called for further governmental measures to help boost the competitiveness of the sector and address the growing trade deficit.

Measures included tax cuts for business, a reduction in long-term interest rates and a cutback in the spread of public banks to stimulate investment in small and micro-enterprises.

($1 = €0.74, $1 = R1.99)

By: Simon West

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