Performance snapshot across key chemical segments
Industry leaders reflect on market conditions
PE
“My view is that we reached the bottom of this cycle and we are slowly heading towards a better 2024, when margins will be recovered. Growth, however, may not come until 2025.”
Stefan Lepecki, CEO, Braskem Idesa
PVC
“High interest rates have burdened the financing of construction projects, leading to a drop in PVC consumption, and, consequently, in PVC prices. The PVC-S market tends to grow with the adoption of federal government incentive policies such as the Minha Casa, Minha Vida program, Marco do Saneamento and the PAC (Growth Acceleration Program), in addition to municipal initiatives such as the new Strategic Master Plan of São Paulo.”
Mauricio Russomanno, CEO, Unipar
PU
“Demand for plastics used for more expensive items using PU like cars, houses, or mattresses has weakened with high interest rates. The consensus is that interest rates are coming down, allowing more money to be injected. When this happens, a strong rebound in demand is usually unleashed.”
Javier Constante, President, Dow Latin America
Styrene and styrenic polymer
“All market segments have suffered from oversupply coming from Asia with bigger declines observed in the construction industry, small appliances, and food service packaging. On the other hand, the automotive sector has been steady, and although it is not yet at pre-pandemic levels, we can see a continued year-over-year improvement that points to stable recovery.”
Ricardo Cuetos, VP Americas Polymers Sales Management, Ineos Styrolution
Solvents and aromatics
“Demand for aromatics and solvents remains strong, and international prices for aromatics have been sustained since record peaks in July 2022.”
Martina Azcurra, Executive Manager, Chemicals, YPF Química
Chlor-Alkali
“The buoyant lithium industry in Argentina presents us with a terrific growth opportunity. The chloralkali products are being used in the production of lithium hydroxide for battery cathodes. This is a very promising growth pillar, and we want to make sure to tap into its potential early on.”
Juan Pablo Ceballos, CEO, Petroquímica Rio Tercero (PR3)
