APLA ’22: INTERVIEW: Indorama expects surfactants demand growth in ag, oil
CANCUN (ICIS)–Indorama expects surfactants demand in South America will continue to grow in the agricultural and energy markets, an executive said.
Brazil had a good crop season this year and next year’s production could reach a record, said Joao Parolin, CEO of Indorama’s Integrated Oxides and Derivatives (IOD) business for South America.
He made his comments on the sidelines of the annual meeting of the Latin American Petrochemical Association (APLA).
Agriculture is an important end market for surfactants, and Brazil is said to feed about 1bn people in the world each year with its products, Parolin said. Soybeans and corn rank among its largest agriculture crops.
Brazil also produces sugarcane for sugar and ethanol as well as cotton for textiles, he said.
Energy production is another important end market for surfactants, and oil output is expected to grow in Brazil.
Parolin also pointed to rising oil production in Argentina.
While energy and agriculture are important surfactant end markets, home and personal care (HPC) is the largest one.
Inflation and the slowing economy are causing consumers to trade down and purchase lower cost products, Parolin said. These lower cost products use smaller amounts of surfactants.
However, home and personal care products must have some surfactants, and consumers will continue buying cleaning and personal-care products. As a result, demand will remain resilient.
For paints and coatings, demand patterns are shifting from new homes and new automobiles to home renovation and automobile renovation, Parolin said.
The APLA Annual Meeting runs through Tuesday.
Interview article by Al Greenwood
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