Latin America stories: weekly summary
ICIS Editorial
25-Mar-2024
SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the week ended on 22 March.
NEWS
AFPM
’24: LatAm petchems brace for slow path to
recovery with all eyes on
China
The petrochemicals
downturn in Latin America is likely to be the
longest ever as Chinese and global
overcapacities dampen prices in the world’s
quintessential “price taker” region for
chemicals.
Brazil’s Braskem
losses widen in 2023 on poor polymers
markets
Losses at Braskem widened further in 2023 to
more than $900 million on the back of poor
market dynamics in polymers, the Brazilian
petrochemicals major said late on Monday.
Brazil’s Braskem
pushes polymers recovery to 2026 despite some
green shoots
Braskem’s said on Tuesday a recovery in
polymers prices in earnest will now only take
place from 2026, with the Brazilian
petrochemicals major posting again a poor set
financial result.
Argentina’s
manufacturing down 6% in Q4, sector hardest hit
amid GDP contraction
Argentina’s petrochemicals-intensive
manufacturing output fell by 6% in the fourth
quarter, year on year, making the sector
hardest hit by the recession, the country’s
statistical office Indec said on Wednesday.
Mexico’s central
bank joins monetary policy easing, cuts rates
to 11%
Mexico’s central bank cut this week the main
interest rate benchmark by 25 basis points to
11%, finally joining other Latin American
central banks in easing borrowing costs as
inflation has fallen consistently.
Brazil’s central
bank cuts interest rates to
10.75%
Brazil’s central bank cut again this week the
main interest rate benchmark, the Selic, by 50
basis points to 10.75%.
Brazil’s farmers
import 40% more urea in February before end of
season
In Brazil, urea imports in February were at
490,328 tonnes, up 40% from 349,452 tonnes in
February 2023 as farmers stepped up purchases
ahead of the close of the season, according to
customs data.
PRICING
AFPM ’24: LatAm
PE margins remain squeezed on
imports
Polyethylene (PE) imports are expected to
remain high throughout Latin America during the
second quarter, with deliveries from the US to
continue dominating.
AFPM ’24: Latin
America PP demand still in doldrums, supply
ample on high imports
Latin America polypropylene (PP) supply is to
remain sufficient in coming months due to
lackluster demand, with a high level of imports
still the predominant feature.
AFPM ’24: LatAm
PS supply to remain ample; demand to drop due
to seasonality
Latin America’s polystyrene (PS) supply is to
remain ample as demand continues to be weak.
Ethanol prices
rise amidst stable supply and demand in
Brazil
Prices for hydrous ethanol were assessed higher
this week, with stable supply and demand across
the country.
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