Latin America has potential for growth in the petrochemical sector, but the next few years will be a challenge as the world enters a period of global recession, as per a presentation by a CMAI analyst. Abundant crude oil reserves, a large and fast-growing population, and increasingly stable economic and political systems will combine to strengthen Latin America's place in the petrochemical industry. In Mexico, privatisation of the energy sector will increase efficiency and production, while natural gas exploration in Chile and Argentina will allow their petrochemical industries to be more feedstock self-sufficient. Meanwhile, regional leader Brazil will prove more effective at responding to the rapidly-changing business environment through industry consolidation, and newly discovered crude reserves will ensure the sustainability of its petrochemical sector far into the future. However, he said, Latin America and the rest of the world must first endure a cyclical downturn as demand slows and prices in many markets enter a period of freefall. Capacity expansions that are now coming online around the world, funded by the cyclical upturn in petrochemical prices, will be certain to exacerbate an already-grim demand climate.
18-Nov-08 
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