Latin America stories: biweekly summary

Aug 06, 2023

ICIS Editorial

05-Jun-2023

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the fortnight ended on 2 June.

NEWS Brazil manufacturing contracts in May on ‘concerning’ trends, but few green shoots appear Brazil's manufacturing industries posted in May their seventh month in contraction territory with "concerning trends" growing, analysts at S&P Global said on Thursday.

Brazil's Q1 GDP expands 1.9% but manufacturing contracts on poor chemicals Brazil's GDP rose 1.9% in the first quarter of 2023, compared with the fourth quarter of 2022, but manufacturing posted a decline in output dragged down by a fall in chemicals production, the country's statistics office IGBE said on Thursday.

Mexico manufacturing slows down to four-month low in May Mexico's manufacturing landscape took a turn for the worse in May, compared with April, with production and sales falling, but it remained in expansion territory, analysts at S&P Global said on Thursday.

Brazil's fertilizers producer prices down sharply in April, all chemicals subsectors post falls A fall of nearly 6.5% in Brazil's fertilizers producer prices in April, month on month, dragged down overall chemicals prices, the country's statistics body IBGE said on Tuesday.

Brazil's car sales could rise nearly 20% in 2023 on tax breaks for purchases Brazil's car sales could be nearly 20% higher in 2023, year on year, thanks to the tax breaks to be implemented by the government on car purchases, the country's automotive trade group Anfavea said.

Brazil's Unigel rating lowered on ‘sharp, simultaneous’ downturn in petchems, ferts Brazilian producer Unigel's debt rating was downgraded over the weekend by two credit rating agencies on the back of a "sharp and simultaneous" downturn in both its petrochemicals and fertilizers divisions, according to Fitch Ratings.

Mexico's Q1 GDP expands 1%, primary sector output falls Mexico's GDP expanded by 1% in the first quarter of 2023 from the fourth quarter in 2022, although primary economic activities contracted by 2.8%, the country's statistics body, Inegi, said on Friday.

Argentina's economy grows 0.1% in March, manufacturing remains healthy Argentina's economic output grew by 0.1% in March, month on month, with the petrochemicals-intensive manufacturing sectors contributing positively, the country's statistics body Indec said on Tuesday.

PRICINGLatAm domestic PP prices fall on lower feedstock costs, weak demand Polypropylene (PP) domestic prices fell across Latin American (LatAm) countries because of lower feedstock costs and weak demand.

LatAm domestic PE prices drop in Brazil, Chile and Mexico Domestic polyethylene (PE) prices dropped in Brazil, Chile and Mexico tracking lower US export prices and weak demand. In Argentina and Colombia, prices were unchanged.

Poor PVC demand drops prices in Brazil and Argentina Prices for polyvinyl chloride (PVC) in Brazil dropped in June based on continued weak demand across the country. Although supply is stable, consumption remains limited owing to the high inventories held by buyers.

Higher hydrous and anhydrous ethanol prices in Brazil Hydrous ethanol prices are higher on both sides of the range, and demand is weak at the end of May.

Brazil caustic soda prices fall at the end of May Brazilian caustic soda prices decreased as a result of the country's high inventory levels and ongoing competition for market share.

LatAm international prices fall due to softening US export market International polyethylene (PE) prices were assessed lower in Mexico, Chile, Colombia, and Peru because of lower US PE export offers. Brazilian international prices held steady.

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