The Latin American chemical industry has enjoyed a global recovery in petrochemical markets as well as sustained regional economic gains. The good times have fostered an enthusiasm for regional expansion plans. Major economies with large chemical enterprises in Latin America have experienced two successive years of solid economic growth. They are expected to show consistent economic growth in the coming years.

Higher Consumption of PE and PP

    Latin America's present consumption of 8.6 million tons of both Polyethylene (PE) and Polypropylene (PP) is likely to grow at about 5% in the coming few years. PE saw a growth of 4% while PP grew at 7 % in 2006. Three major consuming countries are Brazil with 3.25 million ton, Mexico with 2.46 million ton and Argentina with 0.7 million ton consumption. Their likely consumption of almost 6.4 million tons in 2007 accounts for 75% of the total. More than 70% of production in this region are in the hands of six players lead by Braskem. However producers of PE and PP see a surplus coming very shortly, making them look to export to faster growing markets like Asia.

    Need for cost-effective, high-performance compounds in specific technical applications and demand for capabilities that can enable advanced production, will fuel the growth of Engineering Compounds. Demand is currently lower in Latin America as compared to Europe and USA. However, as with most polymers, the growth rate for Engineering Compounds is estimated to surpass 10% pa in the years to come.