Latin America stories: bi-weekly summary

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the fortnight ended on 18 April.

NEWS
Brazil’s chemicals production in ‘free fall’ as idle capacity hits 40%
Brazil’s chemicals industry is facing its worst performance in 30 years, with the producing companies in the sector operating at just 60% of installed capacity during January and February, the country’s trade group Abiquim said.

Mexico must do homework on USMCA compliance, set policy to prop up nearshoring – Evonik exec
Mexico breathed a sigh of relief when the US spared it from very punitive tariffs, but the country should not turn complacent and use this as a catalyst to step up compliance with rules of origin clauses contained in the North America free trade deal USMCA, according to the director for Mexico at German chemicals major Evonik.

US tariffs spark fears in Chile about even higher industrial goods imports
US import tariffs on China and other Asian countries are increasing fears in Chile that even higher amounts of imports will dent domestic plastics and wider manufacturing producers’ competitiveness, according to the CEO at the country’s plastics trade group Asipla.

INSIGHT: Argentina’s chemicals remain uninvited to the recovery party
Argentina’s chemicals sector remains in the doldrums, with output in the first quarter lower year on year, according to sources, who are increasingly turning pessimistic about manufacturing’s prospects amid the push for economic liberalization.

Brazil’s inflation rises to 5.5% in March, further tightening expected
Brazil’s annual rate of inflation rose to 5.5% in March, year on year, the highest level in more than two years and up from 5.1% in February, the country’s statics office said on Friday.

Argentina’s chemicals, plastics output keeps falling but manufacturing, construction up
Argentina’s chemicals and plastics output continued falling in February, year on year, but petrochemicals-intensive activity in construction and overall manufacturing rose, according to the country’s statistics office Indec.

Argentina’s annual inflation down to 56%; monthly price rises accelerate
Argentina’s annual rate of inflation fell in March to 55.9%, down from 65.9% in February, the country’s statistics office said on Friday.

Argentina’s IMF bailout confirmed after Milei returns from Washington; tariffs deal more elusive
When President Javier Milei of Argentina travelled to Washington last week, most analysts expected him to return with an IMF bailout agreed and ready. On Wednesday, the Fund confirmed a bail out for Argentina for the second time in four years, affirming analyst expectations.

PRICING
LatAm PP spot domestic prices lower in Brazil on ample supply, weak demand
Spot domestic polypropylene (PP) prices were assessed lower in Brazil on ample supply and weak demand. In other Latin American countries, prices were steady.

LatAm PE domestic prices fall in Brazil, Mexico on ample supply, soft demand
Domestic polyethylene (PE) prices fell in Brazil and Mexico while being unchanged in other Latin American (LatAm) countries.