Petrochem imports in Venezuela soar

26-May-11

Venezuela’s petrochemical sector reported a slight growth in sales during 2010. However, figures indicate that chemical and petrochemical industries are undergoing an testing time, with a somewhat bleak outlook. President of the Venezuelan Chemical and Petrochemical Industry Association (Asoquim), commented that in 2010, value of the petrochemical sector's gross sales rose by 10.3%, thanks to a 37.7% hike in exports. However, the domestic market only grew by only 1%. Total sales reached US$3.63 bln in 2010. However, the trade balance showed a deficit, as imports totaled US$3.24 bln and exports amounted to US$1.16 bln in 2010. As reported by Asoquim, "production aimed at the domestic market has weakened, whereas exports have been kept to a minimum." At the same time, imports have soared in order to offset the lower domestic supply of goods that are no longer produced in the country such as PET bottles for soft drinks and other beverages. 71% of companies in the petrochemical sector (about 300) made operational investments for replacement of machinery, equipment, spare parts and maintenance in 2010. The petrochemical industry has trouble in the access to foreign currency. Also, freezing of diplomatic and trade relations between Venezuela and Colombia led to "a total loss" of the trade relation with Bogotá.