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The plastics and petrochemical industry in Brazil is facing cost challenges

ihsinc in Sao Paulo, Brazil Analysts of the company said at the Latin American petrochemical and polymer conference that the plastic and petrochemical industry in Brazil is facing new challenges because the high labor, tax, logistics and energy costs constitute a lingering and disgusting cost in Brazil

at present, the price of processed plastic products produced in Brazil is 29% higher than that of similar products in developed markets, 35% higher than that in emerging markets where raw material indicators have a great impact on diaphragm performance, and 34% higher than that in China. This is mainly due to the costs of various input factors that constitute the cost of Brazil. Since 2003, the import volume has increased at an average annual rate of 9%, accounting for 22% of the total consumption of processed plastics in Brazil

Rina Quijada, senior Latin American director of his, said that Brazil's lack of competitiveness began with basic raw materials, and now most of them are imported products based on naphtha. Brazil's higher gasoline demand is also increasingly pushing naphtha out of the petrochemical industry

she said: with the energy revolution in North America, light raw materials such as ethane and propane are much more efficient in producing ethylene and propylene. Therefore, when Brazil reviewed our experimental machine, after long-term communication with customers and R & D experience, depending on its production environment, it saw high taxes, uncompetitive raw materials, and a domestic currency that was very weak against the US dollar. The depreciation of the Brazilian real has made the price of naphtha raw materials more expensive

the Brazilian real has depreciated by about 13% against the US dollar in the past three months. The depreciation of the Brazilian real has had a positive impact on Brazil's finished product producers. Foreign imported products, such as films imported from China, used to beat domestic producers in the Brazilian market due to the weakness of the US dollar. Quijada said that now with the appreciation of the dollar, Brazil's local finished product manufacturers may get a chance of survival

she said: if the real depreciates further, Brazilian plastic processing enterprises will have more opportunities to reoccupy the domestic market, but they will not be able to compete in the international market. There are many growth opportunities in many final applications in Brazil, including agriculture, automobile, mining, etc. If you can produce locally in Brazil in a more competitive environment, there will be opportunities for growth

the income growth and consumption level of low - and middle-income people in Brazil (i.e. class c people) have doubled since the end of the experiment in recent years. Quijada said that as Brazil vigorously builds infrastructure for the 2014 football World Cup and the 2016 Summer Olympics, its economic growth rate is expected to exceed the current level

Brazil's chemical industry ranks sixth in the world, with a net income of US $153 billion in 2012. The industry is trying to promote the federal government to make policy changes that are beneficial to enterprises and provide help to the industry - which is also beneficial to plastic producers - and the industry has recaptured a large part of its domestic market

its functions and characteristics are as follows: ABIQUIM is lobbying the government to simplify and reduce the tax on imported raw materials. The association also called for the introduction of investment incentives to help expand domestic production, and called on the federal government to introduce a new deal on the use of natural gas as a raw material by the end of this year

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