RIO DE JANEIRO (ICIS)—Brazil’s Braskem anticipates a return to growth in the country’s polyethylene (PE) and polypropylene (PP) demand along with a recovery in the Brazilian economy, company representatives said on Monday.
Braskem anticipates domestic demand for PP and PE to grow by around 4-5% in the coming year as the Brazilian economy recovers following the recent recession.
The sources made their comments on the sidelines of the annual meeting of the Latin American Petrochemical Association (APLA).
“We believe that the Brazilian economy has turned a corner and that economic growth will resume in 2018. We foresee healthy domestic demand growth for PP and PE as the economy begins to recover. However, it may take another 5-10 years before Brazil returns to pre-recession levels of economic performance,” Braskem representatives said.
While the outlook for the Brazilian economy is improving, Braskem representatives noted that political instability remains a potential threat going forward, especially with fresh elections being held next year.
The APLA annual meeting runs through Tuesday.