The depreciation of the Brazilian real is having a positive effect on the share of local petrochemicals production sold on the Brazilian market. Although recovery is expected from ----, it will be slow and will lack the stimulus needed to significantly raise petrochemicals consumption to pre-recession levels. ...Although recovery is expected from ----, it will be slow and will lack the stimulus needed to significantly raise petrochemicals consumption to pre-recession levels. Total capacities over the next five years will include -.-mn tpa of ethylene, -.-mn tpa of propylene, -.-mn tpa of polyethylene, -.-mn tpa of polypropylene and -.-mn tpa of polyvinyl chloride. In Q---, Petrobras was holding exclusive negotiations with Mexican petrochemical company Alpek for the acquisition of the Brazilian state-owned oil company s petrochemical units. The subsidiaries include Petroquimica Suape and Citepe, which have significant polyester chain production. � Brazil remains in third place in our Americas Risk/Reward Index ranking, with its score rising by -.- points to --.- points.
...The nation plans to tap offshore gas to increase feedstock availability. Petrobras aims to increase local naphtha production. ...Petrobras aims to increase local naphtha production. Reductions in polyethylene (PE) import tariffs will provide opportunities for exporters to Brazil as well as cost reductions for domestic converters, although this could be at the expense of domestic PE producers market share. Industry leaders are hoping that recently announced stimulus measures will allow companies to operate at a higher capacity, as well as boosting competitiveness. These measures include lower earnings taxes, with a plan for their gradual removal between ---- and ----. Ethanol mills are emerging as an alternative feedstock for polymers production and are receiving low-cost credit.
...Lacks feedstock integration and relies on significant quantities of imported naphtha. Complex ownership structure causes delays in decision-making, especially for expanding production or initiating technological innovations. ...
