Latin America stories: weekly summary

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the week ended on 4 October.

NEWS
Brazil’s manufacturing expands healthily again in September on stronger demand
Brazil’s manufacturing sectors posted a significant improvement in September on the back of an increase in production, stronger job creation, and accelerated sales growth, analysts at S&P Global said on Tuesday.

Mexico’s manufacturing contraction deepens in September as perfect storm gathers pace
Mexico’s petrochemicals intensive manufacturing sectors deepened their contraction during September as a perfect storm of lower orders, lower output and lower employment levels is forming, analysts at S&P Global said on Wednesday.

Colombia manufacturing falls further into contraction in September
The manufacturing sector in Colombia fell further into contraction territory in September on the back of weak demand which dented factory output, analysts at S&P Global said.

Chile’s manufacturing starts Q4 in good form, central bank forecasts healthier growth
Chile’s economy has had several ups and downs in the past 12 months, including flirting with a recession, but the petrochemicals-intensive manufacturing sectors and macroeconomics point to healthier growth in Q4 and into 2025.

INSIGHT: Brazil’s booming economy creates problems of its own – but chemicals absent from bonanza
Brazil’s economy has beaten the odds in 2024, and GDP growth is expected to top 3% for the year, although this success is coming accompanied by a series of challenges – not least inflation and interest rates, which remain high.

INSIGHT: Optimism over Mexico’s Sheinbaum tempered by fears of executive over-reach
Claudia Sheinbaum’s historic swearing-in this week as the first female Mexican president and the optimism it infused could quickly turn sour if her party Morena continues approving one-party, structural reforms thanks to the ‘supermajority’ of two thirds of seats in parliament.

Agribusiness titan Bunge concludes sale of its share in BP Bunge Bioenergia in BrazilGlobal agribusiness titan Bunge announced it has completed the previously announced sale of its 50% share in BP Bunge Bioenergia to BP, which now owns 100% of the business.

Verde AgriTech successfully renegotiates loans with their creditors in Brazil
Fertilizer producer Verde AgriTech has announced a successful renegotiation with the banks holding 73% of its outstanding loans.

Brazil’s Innova BOPP capacity to nearly double with Polo Films acquisition
Chemicals producer Innova is to increase its production capacities for biaxially oriented polypropylene (BOPP) film by 86% to 130,000 tonnes/year if its planned acquisition of Polo Films goes ahead as planned.

Colombia’s central bank cuts rates by 50 basis points to 10.25%
Colombia’s Banco de la Republica decided late on Monday to cut its benchmark interest rate by 50 basis points to 10.25% in a split decision among members of its monetary policy committee.

PRICING
Mexico PP domestic prices fall tracking propylene
Domestic polypropylene (PP) prices dropped in Mexico tracking lower propylene costs. In other Latin American countries prices were assessed unchanged.

Mexico domestic PE prices fall on ample supply, soft demand
Domestic polyethylene (PE) prices fell in Mexico on ample supply and soft demand while being unchanged in other Latin American countries.