Latin America stories: weekly summary

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the week ended on 17 November.

NEWS
APLA ’23: PVC demand starting to improve but overcapacities to cast shadow for years – Unipar
Global demand for polyvinyl chloride (PVC) is “starting to improve” but the market’s overcapacities may take years to be absorbed, an executive at Brazilian producer Unipar said this week.

Argentina’s inflation at nearly 143% in October as voters head to polls
Argentina’s annual rate of inflation jumped to 142.7% in October, up from September’s 138%, the country’s statistical office Indec said this week.

APLA ’23: Braskem Idesa prepares for terminal, turnaround before expansion – CEO
Braskem Idesa is preparing for the start-up of its new joint venture (JV) ethane terminal along with a major turnaround at its Ethylene XXI cracker and polyethylene (PE) complex in Coatzacoalcos, Mexico in 2025, ahead of a planned expansion of ethylene capacity, its CEO said.

APLA ’23: Global PE market to see real recovery in 2025 – Braskem Idesa CEO
It’s clear as day that the global polyethylene (PE) market is oversupplied and that it will take some time for the industry to crawl out of the trough. 2024 looks to be a transition period coming out of the bottom with a more robust recovery expected in 2025, said the CEO of Braskem Idesa.

APLA ’23: INSIGHT: Overcapacity in virgin polymers pressures Lat Am recycling market
The global price pressure on virgin polymers driven by overcapacity is also hitting the recycled plastics market, a situation that is expected to continue until the oversupplied industry rationalises capacity.

APLA ’23: Brazil’s Unigel to restart Camacari fertilizers plant ‘as soon as possible’
Unigel has reversed a decision to shut its Camacari fertilizers plant in the state of Bahia as it says the operations could be viable, the Brazilian chemicals and fertilizers producer said late on Tuesday.

APLA ’23: LatAm surfactants demand resilient in HPC, weaker in ag, coatings – Indorama exec
Demand for surfactants in Latin America is resilient in home and personal care (HPC), weak but improving in agriculture and still challenged in paints and coatings, said the head of Indorama’s Integrated Oxides and Derivatives (IOD) business in South America.

APLA ’23: Brazil’s residential, fertilizers gas needs to put petchems at back of queue – Indorama exec
Brazil’s natural gas needs for residential use and its lack of significant fertilizers production would put the petrochemicals sector at the back of the priorities list, according to an executive at Indorama.

APLA ’23: Reshoring to drive Mexico, LatAm economic growth, chemicals demand
Reshoring or ‘friend-shoring’ will be a key driver of economic and chemicals demand growth in Mexico and the rest of Latin America.

APLA ’23: Petchems to get worse before it gets better on geopolitics, China exports – Arkema exec
The global downturn in petrochemicals may still need to reach a bottom as new geopolitical tensions add pressure to energy and feedstocks supplies, an executive at France’s chemicals major Arkema said on Monday.

INSIGHT: Nearshoring to Mexico expanding major chem end markets
Nearshoring is already happening in Mexico, and several key chemical end markets could continue expanding capacity in such areas as automobiles, appliances and aerospace.

PRICING
Lat Am PP domestic, international prices steady on sufficient supply, soft demand
Domestic polypropylene (PP) prices were stable this week across Latin American countries. International prices were also assessed unchanged.

Lat Am international PE prices stable to soft on competitive US export offers
International polyethylene (PE) prices were assessed as stable to soft across Latin American countries on the back of competitive offers from the US.

APLA ’23: Brazil’s Unigel restarts PS plant amid higher demand
Unigel will restart this week its polystyrene (PS) plant in Sao Jose dos Campos, state of Sao Paulo, the company’s PS commercial manager said to ICIS.