Brazilian Petrochemicals sector expected to be slow in H2

04-Jul-08

Record high oil prices and the weakening US dollar will take their toll on the Brazilian petrochemical industry in the second half of this year. Profit margins will get thinner and revenues are also expected to be hit as a weak dollar adversely affects the industry, whose performance is measured in dollars, and high oil prices have boosted cost of petrochemical feedstock. Current conditions do not indicate a softening of oil prices as well as stronger dollar values in the long term. The Brazilian companies continue to thrive on robust domestic demand.