PUBLICATION

Global Business Reports
Chemical Week

AUTHORS

Ben Cherrington, Marta Armengod

Latin America Petrochemicals and Chemicals 2022 - Chemical Week Release

December 04, 2022

Fuelled by high commodity prices and government stimulus packages, GDP in Latam and the Caribbean grew by 6.9% in 2021. However, whether such growth was sustainable in the context of a myriad of macro challenges was questionable. As the year progressed, a surging US dollar and rising energy prices put pressure on the Latam chemical supply chain, increasing costs for a region dependent on raw material imports.

Despite the headwinds, trends such as the re-regionalization of production chains and the acceleration of the green agenda offer opportunities for a region with abundant natural resources, a large consumer market, and the world’s biggest economy in close proximity. To stimulate the investment necessary to capitalize on these opportunities, cooperation between the ‘pink tide’ of left-wing governments with the private sector is paramount. Braskem Idesa’s agreement with Pemex to construct the US$400 million Puerto Mexico Chemical Terminal in Veracruz in Mexico points to a path forward.

Encompassing each vertical in the chemical sector, the most notable theme apparent in this report is an industry-wide focus on sustainability. Where this used to be the realm of the large producers, now the full value chain is aligned with a push for greener products and carbon emission reduction.

RELATED INTERVIEWS MORE INTERVIEWS

Haldor Topsoe discusses the potential for energy transition in Latin America.
The Mexican Union of Agrochemicals Manufacturers and Formulators (UMFFAAC) describes the main themes impacting its members.
Cristian García of PROCCYT explains the dynamics influencing Mexico’s crop protecting sector.
FMC discusses the rise of sustainable products which have minimal residues on crops.

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