CARTAGENA, Colombia (ICIS)--Brazil’s resin consumption is behind its peers in Latin America, an investment bank analyst said on Tuesday, saying the potential for resin demand in the country is at multiple times GDP growth.
The low level of resin consumption in Brazil means that even in a slow economy the resin market will perform well, said JP Morgan Brazil analyst Caio Carvalhal during a presentation at the Latin American Petrochemical Association (APLA) annual meeting.
Carvalhal pointed to the performance of Brazil’s petrochemical maker Braskem, which he said is doing well despite the continued slow pace of the Brazilian economy.
Brazil’s GDP is expected to grow by only 2.50% in 2013 and by a weaker 2.11% in 2014, according to a recent survey of analysts by Brazilian daily O Estado de S Paulo.
The days when Brazil was showing significant economic growth are finished, said a Brazilian consultant attending the event.
However, the consultant acknowledged that the market for polyethylene (PE) applications in retail, such as for food and beverages, is good despite the slow economy.
The APLA conference ends on Tuesday.