...Shale Gas Driving Competitive Edge The North American shale gas boom should help chemicals manufacturers reliant on natural gas and ethane feedstocks to remain competitive. Ethane prices have bottomed and are expected to remain relatively low in the near term versus crude oil-priced feedstocks such as naphtha. Low feedstock costs will help chemicals manufacturers' stability in operating margins in spite of weak pricing and modest volume growth. Within Fitch Ratings' Latin America chemicals portfolio, Mexican corporates seem better positioned to withstand short-term risks related to market shifts. What to Watch Access to Raw Materials LatAm chemicals manufacturers have announced and started numerous expansion projects seeking to take advantage of low-cost feedstocks. Partnerships with both regional and North American companies are likely to continue as companies seek ways to co-finance investments, share technologies and lower project risks. For example, Ethylene XXI, the Braskem-IDESA joint...
