MADRID (ICIS)–Latin American petrochemicals prices remain in the doldrums due to global oversupply, but domestic producers are hoping a sustained increase in freight costs and protectionist measures could start improving their dented market share.
Petrochemicals in the world’s quintessential ‘price taker’ region – Latin America remains a net importer and therefore is at the mercy of global price swings – have had some of the toughest years in memory: high levels of lower-priced imports have heavily reduced operating rates in the region.
In Brazil, producers’ operating rates stood in May at a record low of 58%, according to the country’s chemicals trade group Abiquim. The story repeats itself in most Latin American countries, perhaps with the only exception of Mexico.
There, the government increased import tariffs in several chemical products and the country’s North American status makes its petrochemicals industry less prone to the woes its southern neighbors have to deal with.
Published by: www.icis.com
Jonathan Lopez
31-Jul-2024
