28 May 2013 15:28 [Source: ICIS news]
PARIS (ICIS)--Brazil’s trade deficit for its petrochemical industry is likely to reach $35bn this year, as capacity expansion fails to keep pace with growing demand, the head of industry association the Argentine Petrochemical Institute (IPA) said on Tuesday.
The figure would represent a year-on-year increase of $7bn (€5.4bn) compared with the trade balance deficit recorded for 2012, according to IPA president Jorge de Zavaleta.
“The net deficit in 2012 was $28bn. This year, it will be $35bn. The problem is that demand is increasing so fast, and there is no plan to build plants,” he said, speaking at the Latin American and Caribbean Petrochemicals Conference in Paris, France.
The key sub-sectors driving the deficit are imports of organics, which accounted for 29% of 2012's total deficit at a cost of $8bn for the year. Inorganics made up $4.6bn of the total for 2012, while resins and elastomers represented 9% of the total at $2.5bn.
Others materials, including fibres, agrochemicals and coatings, added $13bn to the total.
The most-imported chemicals for 2012 included potassium chloride, urea, fertilizers and agricultural chemicals, while Brazil’s key petrochemical exports were alumina and plastic resins, de Zavaleta added.
($1 = €0.77)
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