Brazilian demand for resins increase 6% year on year - Abiquim

18 March 2013 19:30  [Source: ICIS news]

CAMPINAS, Brazil (ICIS)--Brazilian demand for thermoplastic resins showed moderate growth in 2012, increasing 6% year on year, while domestic sales rose 10%, the nation's chemical industry association Abiquim said on Monday.

A weak Real (R) as well as the recovery of the market for imported products, whose volume decreased 15.5% in 2012, helped the industry achieve better results, it said.

Even registering a growth on its production, demand for thermoplastics still weights on the chemical sector, Abiquim said.

Apparent consumption of resins - production plus imports minus exports - increased 1.7% in 2012 year on year.

"The [domestic] demand has been showing stagnation, which may mean an advancement imports of finished products [that are] stealing market from thermoplastic resins", the association said in a statement.

On the other hand, the participation of imports over the apparent consumption of thermoplastic resins reached 25% last year compared with 30% in 2011.

According to Abiquim, the per-capita consumption of resins reached 30kg in 2012.

However, the Brazilian standard of consumption is still low compared to countries such as United States and other countries from Europe.

Statistics technical director Fatima Giovanna Coviello Ferreira said that the other preoccupation that the chemical industry faces is the low level of installed capacity in Brazilian companies.

"Beside the improvement on volumes in the last year, the companies operated with a high idleness level and there's still a strong pressure on imports, which come to Brazil as a way to diminish stocks from competitor countries," she said.

The executive urged the adoption of the measures Abiquim has defended before the Chemical Industry Competitiveness Council, including the exemption of basic petrochemicals feedstock, the implementing of special measures for the chemical industry and a policy for the utilisation of natural gas as raw material.

"These actions could make feasible the full utilisation of the installed capacity of companies, or even their expanding," Abiquim said.

Brazilian sales of polyethylene terephthalate (PET) were 17.8% higher in 2012 year on year, while imports decreased 35.3%, the organisation said.

Sales of polyvinyl chloride (PVC) rose 14.57% in 2012, while imports decreased 15.6%.

High density polyethylene (HDPE), low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) increased in domestic sales by 10.2% in 2012, while imports fell 14%.

Sales of polypropylene (PP) increased 7.4% year on year. Polystyrene (PS) sales also increased, registering a growth of 3.6% year on year.

PET and PVC sales had the best performance among the results of the sector for thermoplastic resins, Abiquim said.

By: Leo Siqueira
+1 713 525 2600

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