Latin America stories: weekly summary

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the week ended on 14 June.

NEWS 
INSIGHT: Brazil, Mexico currencies take a hit, energy policy under Sheinbaum remains in spotlight
The Mexican peso continued sliding this week as the new President Elect Claudia Sheinbaum’s Morena party achieved the “super-majority” investors feared, which could open the door to one-party constitutional reforms, while her energy policy remains on the spotlight.

Argentina’s inflation down to 276% in May, first fall in 10 months
Argentina’s annual rate of inflation fell in May to 276.4%, down from April’s 289.4%, the country’s statistical office, Indec said, the first fall since July 2023 and six months after President Javier Milei took office.

Higher import tariffs one leg of wider plan to save Brazil’s besieged chemicals producers – Abiquim
Proposals to sharply increase chemicals import tariffs are only one of the three aspects Brazil’s chemicals producers have proposed to the government to save their “besieged” operations, according to the CEO at trade group Abiquim.

Mexico’s petchems supply flowing despite Altamira disruption, but industry crisis could continue
The drought affecting the Altamira petrochemicals hub in Mexico’s state of Tamaulipas is not yet affecting the supply of chemicals, but the water restrictions for industrial players could continue, sources said this week.

Brazilian pulp producer Suzano to acquire 15% stake in Austria’s Lenzing
Brazilian pulp producer Suzano has agreed to acquire a 15% stake in Austrian cellulosic fibres company Lenzing for €230 million, paying €39.70/share, officials said on Wednesday.

Brazil fertilizers interactive trade flow map January-May 2024
The Ministry of Development, Industry and Foreign Trade for Brazil has released fertilizer trade figures for January-May 2024.

Future disruption to Panama Canal will depend on El Nino intensity – expert
Despite arrangements put in place to make the Panama Canal fit for a changing climate, future disruption at the Americas key shipping route will depend on a variable no-one can predict: the intensity of future El Niño weather phenomenon, according to an expert at maritime services provider CB Fenton on Tuesday.

Mexico’s chemicals output up 7.2% in April, manufacturing up nearly 4.0%
Mexico’s chemicals output rose by 7.2% in April, year on year, well above the 3.8% increase in overall manufacturing activity, the country’s statistical office Inegi said on Tuesday.

Chemical tanker prices rise as much as 75% since 2020 on lack of liquidity – expert
Chemicals tanker prices have risen globally 30-75% in the past four years on a lack of liquidity, an expert at Chile-headquartered chemicals bulk operator Ultratank said on Tuesday.

Brazil’s inflation up to 3.93% in May; prices rise sharply in floods-hit state
Brazil’s annual rate of inflation rose in May to 3.93%, up from 3.69% in April, with notable price rises registered in food products, especially in the floods-hit state of Rio Grande do Sul, the country’s statistical office IBGE said on Tuesday.

Closures of high-cost assets to accelerate in Europe, northeast Asia – ICIS
Announcements of closures for high-cost assets, especially in Europe and northeast Asia, are likely to accelerate in coming quarters as the global petrochemicals industry is forced to rationalize, according to an ICIS analyst on Tuesday.

Venezuela’s Pequiven, Turkey’s Yildirim mull petchems, ammonia facilities
Venezuelan state-owned petrochemicals producer Pequiven has signed an agreement with Turkey’s conglomerate Yildirim to consider building petrochemicals and ammonia facilities in the country, according to the Venezuelan Ministry of Economy.

Chile’s Petroquim navigating better than peers pressure from Asian material – exec
Polypropylene (PP) producer Petroquim is also facing pressure from lower-priced material sent from Asia, but the company’s “dedicated” service to customers has kept its sales spared from a larger hit, according to the commercial manager at the Chilean company.

PRICING
LatAm PP international prices steady to higher on squeezed margins, higher freight rates
International polypropylene (PP) prices were assessed as stable to higher across Latin American countries because of higher freight costs and squeezed margins.

LatAm PE international prices steady to up on higher offers from abroad
International polyethylene (PE) prices were assessed as steady to higher across the region on the back of higher offers from abroad.

Plant status: Alpek Polyester’s Altamira plants ceases operations due to water scarcity in Mexico
Mexico’s chemicals producer Alpek has declared force majeure for purified terephthalate acid (PTA) out of its 1 million tonnes/year facilities in Altamira, state of Tamaulipas, on the back of the severe drought which has restricted water supplies to industrial companies.

Stable PET prices in Mexico prevail amid supply challenges
Throughout this week, polyethylene terephthalate (PET) prices have remained stable in Mexico, as per market observations. However, industry participants believe that this stability might not last long.