Dear Reader,

Welcome to GBR’s Latin America Petrochemicals and Chemicals 2022 – the latest edition of the special annual publication produced in collaboration with APLA. In this report, we discuss how Latin America’s petrochemical and chemical sectors have faced a challenging global economic and political backdrop in 2022, and how they are preparing for what is expected to be a turbulent 2023. Fueled by high commodity prices and government stimulus packages, GDP in Latam and the Caribbean grew by 6.9% in 2021. However, whether such growth was sustainable in the context of a myriad of macro challenges was questionable. The Russia-Ukraine conflict that began in February 2022 upset an already fragile global supply chain, and as inflation began to ramp up, the backdrop has been set for a potential recession.

As the year has progressed, a surging US dollar has put pressure on Latin America’s chemical supply chain, increasing costs for a region dependent on imports of raw materials. At the same time, rising energy prices globally have highlighted the importance of energy sovereignty.

Despite the headwinds, trends such as the re-regionalization of production chains and the acceleration of the green agenda offer opportunities for a region with abundant natural resources, a large consumer market, and the world’s biggest economy in close proximity. To stimulate the investment necessary to capitalize on these opportunities, cooperation between the so-called ‘pink tide’ of left-wing governments with the private sector is paramount. Braskem Idesa’s agreement with Pemex to construct the US$400 million Puerto Mexico Chemical Terminal in Veracruz in Mexico points to a path forward.

The most notable theme of over 60 interviews conducted for this report has been an industry-wide focus on sustainability. While this used to be the realm of the large producers, now the full value chain is aligned with a push for greener products and carbon emission reduction.

APLA’s 42nd annual meeting in Cancun, Mexico, provides a platform for the industry to share knowledge at this critical moment. APLA is committed to supplying top-value information for the industry’s stakeholders in Latin America and beyond. This special publication, in partnership with industry report specialists Global Business Reports, contains articles, analysis, country factsheets and first-hand exclusive interviews with the most important players across the value chain, and is presented this year in both print and digital interactive formats accessible on the GBR and APLA websites. We hope you enjoy the report, as well as the sessions and networking opportunities at APLA’s annual meeting.