Scarce dollars restrict plastic imports for Venezuela processors

05 April 2013 17:54  [Source: ICIS news]

HOUSTON (ICIS)--The Venezuelan plastic industry is suffering delays of 200 days in obtaining dollars for vital imports of specialty resins, the president of the nation's plastics trade group said on Friday.

Although local producer Pequiven provides 80-85% of the domestic needs, 15-20% of the resins needed must be imported, said Hugo Dell Oglio, president of the Venezuelan Association of the Plastic Industry (AVIPLA).

Those specialty resins have stringent specifications and are not produced locally.

Importers must go through CADIVI, the official entity that administers the allocation of dollars for imports. Delays in the resolution of the requests cause problems with foreign providers and shortages for domestic end users.

AVIPLA is discussing the needs of its members with government officials to obtain a solution for the problems.

In addition to delays in dollar allocations, transformers face logistic problems in the delivery of material. Pequiven has limited the number of trucks loading at El Tablazo, where the resins are manufactured.

He added that the local industry is working to coordinate actions with government officials to import special resin grades needed for automated production of packaging bags for powdered milk.

Another problem mentioned was the disparity between domestic and imported material prices.

When Pequiven mixes both products, the resulting price is much higher, increasing costs for plastic transformers.

However, some end users are in regulated markets, where price freezes are in effect, such as the food packaging sector. This squeezes transformers who are unable to transfer costs.

By: George Martin
+1 713 525 2653

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