RIO DE JANEIRO, Brazil (ICIS)--Chlor-alkali business in Brazil is projected to remain steady amid modest economic growth in 2018, market participants said on Monday at an industry event.
Chlor-alkali activity has tracked the weak Brazilian economic recovery after the recession of 2016, the sources said on the sidelines of the annual meeting of the Latin American Petrochemical Association (APLA).
Brazil’s recovery has remained slower than expected during 2017. The gradual positive trend is expected to continue into 2018, as long as Brazil’s President Michel Temer finishes his term in office without any surprises in the aftermath of the Lavo Jato corruption scandal, the sources said.
Uncertainty remains, however, on approach of the general elections to be held in Brazil in October 2018, the sources said. Industry participants are unclear about who the candidates or likely elected president might be, and what policies might be announced or followed after the election.
In the long term, Brazil’s economy and chlor-alkali business will depend on the outcome of next year’s election, the sources said.