Latin America stories: weekly summary

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

NEWS
Mexico’s chemicals H1 output falls 4.4%, manufacturing up 2%
Mexico’s chemicals output fell by 8.3% in June, year on year, contributing to a fall of 4.4% in the first half of 2023, the country’s statistics office Inegi said on Friday.

Brazil’s Unigel suspends fertilizers production at Laranjeiras on gas costs
Unigel has now suspended operations at its nitrogen fertilizers plant in Laranjeiras while continuing dialogues with “public agents and authorities” to negotiate better natural gas prices, the Brazilian producer confirmed to ICIS on Friday.

Brazil’s Unipar still pursuing controlling stake at Braskem – CEO
Unipar’s non-binding offer to acquire a controlling stake at Braskem may have expired but it continues “debating” the transaction with the company’s shareholders, the CEO at the Brazilian chemicals producer said on Friday.

Brazil’s inflation picks up to nearly 4% in July on higher fuel costs
Brazil’s annual rate of inflation picked up in July to 3.99%, up from June’s 3.16%, due to the end of a tax break, among other price falls, the country’s statistical office IBGE said on Friday.

Mexico’s central banks keeps rates at 11.25%, expects inflation within target in Q4 2024
The Bank of Mexico (Banxico) on Thursday kept the main interest rate benchmark unchanged at 11.25% as inflation remains higher than its target.

MOVES: EuroChem appoints Gustavo Horbach as head of South America
EuroChem has appointed Gustavo Horbach as head of South America, effective immediately, the European fertilizers major said on Thursday.

Polymers recovery pushed to 2025 as China woes continue amid overcapacities – Braskem
The upcycle for global petrochemicals and polymers will only occur from 2025 onward as the market deals with slower-than-expected growth in China and overcapacities, the CFO at Brazil’s Braskem said on Wednesday.

Colombia single-use plastic tax implementation marred by confusion – trade group
The tax on single-use plastics implemented in Colombia this year still lacks key aspects to be regulated, leading to confusion among companies, according to an executive at main industrial trade group Andi.

PRICING
Domestic PP prices increase in Colombia on higher overseas offers
Domestic polypropylene (PP) prices increased in Colombia due to higher offers from overseas. In other Latin American countries, local prices remained unchanged.

LatAm international PE prices steady to firmer on the back of higher US export offers
International polyethylene (PE) prices were assessed as steady to firmer due to higher US export offers. However, according to sources, buyers are reluctant to accept the price increases and are negotiating prices to lower values.

Latin America PVC price fluctuations continue in August
CFR prices are higher on the west coast of South America this week, with plentiful supply and stable demand in August.

Currency devaluation, upcoming Argentina elections concern the PET market
Polyethylene terephthalate (PET) prices in Argentina had no price fluctuations this week, but the new government resolution – which affected import tariffs and the exchange rate – continues to challenge local prices in August.

Brazil ethanol and gasoline parity at lower levels in August
Hydrous ethanol prices were assessed lower this week, with supply and demand being considered stable across the country.

Brazil’s PP imports up more than 30% year to date, US deliveries shoot up
Brazil’s polymers markets continue to be awash with imported products, with imports of polypropylene (PP) up 32% in the January-July period, according to the ICIS Supply and Demand database.

Mexico’s Braskem Idesa ethane terminal 40% completed
Construction of Braskem Idesa’s ethane import terminal in Mexico reached around 40% of physical completion as of June 2023, the Brazilian petrochemicals major and one of the joint venture (JV) partners said on Wednesday following the publication of its second quarter (Q2) financial results.

Brazil’s urea imports decline 8% in January-July as buyers in no rush
In Brazil, urea imports declined 8% in January-July to nearly 3.5m tonnes compared with 3.8m tonnes in the first seven months of 2022, according to customs data.