Latin America stories: weekly summary

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the week ended on 11 October.

NEWS
Dow shuts Argentina polyols plant on global oversupply
Dow has decided to stop producing polyether polyols at its site in San Lorenzo, in Argentina’s province of Santa Fe, on the back of poor economics, the US chemicals major confirmed to ICIS on Wednesday.

Brazil growth story props up chloralkali sector; Argentina still distant from being out of woods – CloroSur
Brazil’s healthier than expected growth in 2024 has greatly propped up the chloralkali sectors, while Argentina’s woes, although improving, will take some time to be fixed, said the director general at Brazil’s trade group Abiclor.

Brazil’s September inflation ticks up to 4.4% on drought-induced higher electricity, food costs
The drought affecting Brazil filtered through consumers prices with higher energy bills and foods prices, pushing the annual rate of inflation to 4.4%, up from 4.14% in August, the country’s statistics office IBGE said on Wednesday.

Argentina’s chemicals output down 3.5% in August, manufacturing down 6.9%
Argentina’s chemicals and some petrochemicals-intensive sectors such as manufacturing and construction continue to bear the brunt of the recession, with output falling again in August, the country’s statistics office Indec said on Tuesday.

Chile’s September inflation down to 4.1%, central bank expected to cut rates further
Chile’s annual rate of inflation fell in September to 4.1%, down from July’s 4.7%, reinforcing analysts’ expectation the central bank is to cut interest rates further later this month.

Brazil’s Q3 automotive output highest since 2019
Brazil’s petrochemicals-intensive automotive output posted in Q3 its best quarter since 2019 and fully recovered its pre-pandemic levels, trade group Anfavea said.

Lula signs law to promote cleaner energy in Brazil
On Tuesday, President Luiz Inacio Lula da Silva officially signed into law the Combustivel do Futuro (PL 528/2020), a significant legislative step aimed at promoting cleaner energy in Brazil.

Mexico’s Alfa completes key step towards Alpek spinoff
The proposed spinoff of Mexican polyester producer Alpek has reached a key milestone, with corporate parent Alfa saying on Tuesday that it has solicited consents from more than 90% of the holders of a batch of senior notes.

Argentina’s inflation falls to 209%; monthly price rises finally below 4% mark
Argentina’s annual rate of inflation fell in September to 209%, down from 237% in August, the country’s statistics office Indec said on Thursday.

Brazil’s Grupo Potencial to expand soybean oil-based biodiesel plant in Parana
Biodiesel and glycerine producer Grupo Potencial is to invest Brazilian real (R) 600 million ($107 million) to expand its facility in Lapa, in Parana state’s region of Curitiba, to up its capacity to 1.62 billion liters/year (1.42 million tonnes/year) of biodiesel, the government of Parana said this week.

PRICING
LatAm PP international prices increase in Chile, Peru on higher Chinese offers
International polypropylene (PP) prices increased in Chile and Peru on the back of higher offers from China, while in Argentina and Brazil, prices dropped tracking competitive offers from abroad.

LatAm PE international prices fall on competitive US export offers
International polyethylene (PE) prices fell across Latin American (LatAm) countries on competitive offers from the US.

Brazil expanding sectors drive PVC import surge
Brazil’s polyvinyl chloride (PVC) imports emerged in 2024, driven by the improved demand from the construction and automotive sectors.