Latin America stories: biweekly summary

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the fortnight ended on 5 May.

NEWS
Brazil’s Braskem stock shoots up on reports of potential acquisition by Adnoc, Apollo
Braskem’s stock was up nearly 30% in Sao Paulo afternoon trading as Abu Dhabi’s Adnoc and US fund Apollo would reportedly be seeking to acquire the Brazilian petrochemicals major.

Mexico’s manufacturing expands in April on healthy demand, input costs moderate
Manufacturing activity in Mexico continued to expand in April with an uptick in sales and orders, while input costs moderated, according to analysts at S&P Global.

Brazil’s Braskem Q1 main chemical sales fall sharply, resin sales stable
Braskem’s Q1 main chemicals sales in Brazil fell 15%, year on year, while resin sales were stable, the Brazilian petrochemicals major said on Tuesday.

Brazil’s manufacturing downturn deepens on poor demand, uncertainty
Brazil’s manufacturing contracted sharply in April and entered a recession on the back of poor demand, high interest rates and political uncertainty, analysts at S&P Global said on Tuesday.

INSIGHT: Key elements of Peru’s ‘economic miracle’ still missing
Despite political instability being the norm, sources in Peru’s chemicals industry, and outside of it, agreed on one thing: the economy has managed to plough ahead.

Brazil government considers changing ethanol percentage in gasoline
The Brazilian Ministry of Mines and Energy could authorise the formation of a committee to study an increase in the ethanol-to-gasoline ratio from 27% to 30%, and more information about this initiative will be covered at the upcoming National Energy Policy Council (CNPE) meeting.

Mexico’s Q1 GDP grows by 1.1% over Q4
Mexico’s Q1 GDP grew by 1.1% quarter on quarter and 3.8% year on year, the state statistical agency (INEGI) said on Friday.

Mexico Orbia expects tight fluorine on EV, 5G, semiconductor demand
Orbia expects that supplies of fluorine will remain tight because of rising demand and fewer mines in China, the main supplier of the mineral, the CEO of the Mexico-based fluorine producer said on Thursday.

Argentina’s economy stalls as peso devaluation talk rises amid rocketing inflation
Argentina’s economy posted flat growth in February, month on month, as talk of a potential devaluation of the peso increases as measures implemented to tame down inflation and hike dollar reserves have failed.

Mexico’s crude output to stabilise at 1.9m bbl/day, private firms’ participation to rise – US EIA
Mexico’s production of crude oil is to stabilise after years of declines, but output in 2023 and 2024 is only expected to increase slightly, the US Energy Information Administration (EIA) said on Thursday.

PRICING
Domestic Lat Am PP prices fall in Argentina, Chile, Colombia, Mexico
Domestic polypropylene (PP) prices were lowered in Argentina, Chile, Colombia and Mexico on lower feedstock costs and weak demand. In Brazil, prices were unchanged.

Domestic PE prices fall in Chile, Mexico on increased supply, competitive US offers
Domestic polyethylene (PE) prices fell in Chile and Mexico due to increased supply and more competitive US offers. Prices in other Latin American countries remained stable.

Latin America PVC market strategies influenced by US Gulf offer and feedstock supply
Demand for polyvinyl Chloride (PVC) in Brazil continues softening, with unclear future negotiations in place. Prices in the country were assessed steady this week based on market input.

Caustic soda prices in Brazil fall in May
Brazil caustic soda prices fell this week due to a slight softening in demand, particularly from the paper and cellulose industries and USG offers in May

Alpek announces new price increase for PET in Argentina
Alpek announced a polyethylene terephthalate (PET) price increase of $245/tonne in Argentina, citing the latest Federal Administration of Public Revenues (AFIP) resolution, which raised import tariffs in Q2, according to a customer letter.

Brazil’s Braskem completes ethanol-to-ethylene plant expansion
Braskem has completed its ethanol-to-ethylene plant expansion in Triunfo, Rio Grande do Sul state, a source at the Brazilian petrochemicals major said to ICIS.

Domestic PE prices lower in Colombia, Mexico on better supply, soft demand
Domestic polyethylene (PE) prices were lowered in Colombia and Mexico on better supply and soft demand. In other Latin American countries prices were unchanged.

LatAm PP market activity subdued as buyers adopt wait-and-see attitude
Market activity was subdued this week as many buyers have adopted a wait-and-see mode waiting for May prices before resuming their purchases.

Latin America PVC prices under pressure from tight supply in the US, attractive offers from Asia
Prices for polyvinyl chloride (PVC) in Brazil remained steady in the last week of April, owing to sluggish domestic demand and stable supply. Market participants expect possible price fluctuations in May due to high inventories and unaltered demand.

Latin America caustic soda prices face pressure from international offers
Caustic soda prices in Brazil were assessed steady this week, based on stable market stability at the end of April. A market participant said inventories in the country are at normal levels; however, imports and US Gulf offers continue to challenge domestic prices.

Improved weather conditions influencing ethanol price changes in Brazil
Prices for hydrous and anhydrous ethanol fell this week as supply availability improved in the market.