Brazil PVC demand expected to grow up to 6% by year end

21 May 2013 23:06  [Source: ICIS news]

SAO PAULO (ICIS)--Polyvinyl chloride (PVC) demand in Brazil is expected to grow by 5-6% for 2013 over 2012, aided by seasonality in the second half of the year, sources said on Tuesday, on the sidelines of the Feiplastic 2013 exhibition.

PVC demand has grown by about 3% so far in 2013, somewhat under earlier expectations, but still an improvement from last year, the source added.

Historically, the second half of the year is significantly better than the first half on demand volumes. However, it is difficult to predict how PVC prices will behave in the next few months, as much depends on developments in other global regions, particularly in Asia, according to the source.

PVC production problems along with the resulting supply tightness that surfaced after the power blackout of late 2012 have been resolved, the source said. Resin availability is now considered to be in balance with demand.

However, other infrastructure issues remain, as the supply of energy is less than reliable, because it is currently dependent on hydroelectric power and Brazil is undergoing a prolonged drought, according to the source.

By: Ron Coifman
+1 713 525 2653

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