RIO DE JANEIRO, Brazil (ICIS)--Polyvinyl chloride (PVC) activity has picked up in Argentina on an improving political and economic outlook, market participants said on Tuesday at an industry event.
While public sector construction projects have increased, building for the private sector has also improved, the sources said on the sidelines of the annual meeting of the Latin American Petrochemical Association (APLA).
PVC pipe processors are no longer complaining about slow business, but stronger activity has led to greater competition and a reduction in PVC pipe margins, the sources said.
Soon after Argentina’s President Mauricio Macri took office in late 2015, he devalued the currency by about 30% and removed state subsidies on gas, electricity and water, driving up the cost of living and reducing the population’s purchasing power. The measures resulted in some resistance to the government at the time. However, the economy has been gradually making gains and the opposition has moderated, while the population’s sense of well being has improved, the sources said.
The APLA annual meeting runs through Tuesday.