Insufficient petrochem production and increase in imports impacts Mexico's plastics indust

04-Jun-14

Mexico's insufficient petrochemical production and increase in imports has impacted the country's plastics industry, which shrank by 1.1% in 2013 after posting average annual growth of 13% in previous years, as per Business News Americas. While there has been a rebound in H1-2014 with 7.7% growth, the figure remains low and reflects the need to grow Mexico's raw materials production and curb exports, Alejandro Llovera, president of the national chemicals industry association (Aniq), was quoted by El Financiero newspaper as saying. "The two main products we have in Mexico are polyethylene (PE) and polypropylene. We are net importers of those two products," he said. Mexico imports 1.2Bt of polypropylene annually and produces 400,000 t, he said. Mexico's plastics industry consumes 2 Mt of polyethylene per year, 75% of which is imported. New projects need to be put into place in order to incentivize the country's petrochemical industry, he said. The dip in Mexican production has been taken advantage of by importers, who have met demand with products from the US and China, El Financiero quoted Cleantho Leite Filho, commercial and business development director at Braskem-Idesa, as saying. "Mexico's plastic resins market did not grow in 2013, and the first quarter of 2014 remains slow. We are a little concerned. Part of that lack of growth has to do with the increase in demand, which is generating a rise in imports of manufactured plastic products. Greater demand for resins should lead to more production by plastics manufacturers," the executive said.