The production of chemicals for industrial use grew by 2.48% in the 3rd quarter of 2019, compared to the previous quarter, according to information released by the Brazilian Chemical Industry Association (Abiquim). In this scenario, the data that is part of the institution's Situational Monitoring Report (RAC) indicates that domestic sales increased by 3.05% and domestic demand increased by 17%.
According to Fátima Giovanna Coviello Ferreira, who is director of Economics and Statistics at Abiquim, for chemical products for industrial use, which form the basis of several industrial chains, the months from July to October are the best of the year, due to the orders for Christmas and the summer period, which increases demand for disposables and other items. “But, despite the recent improvement, in comparison with the results of the third quarter of 2018, the indices for the same period this year show negative variations: production fell by 9.49%, domestic sales fell by 6.49% and apparent national consumption ( CAN) fell 11.47%”, says Abiquim.
Furthermore, from January to September, the use of installed capacity remained at the level of 70%, seven points below that recorded in the same period of 2018, taking idleness to a record level of 30%. “The level is inadequate for the continuous process production standards of the chemical sector and the growing idleness worries companies as it imposes increasingly higher unit costs per ton produced, worsening the national competitiveness relationship with the imported product”, explains Fátima .
To complete the context, a possible unilateral reduction in import tax tariffs on several products, including a large quantity of chemicals manufactured in Brazil, is being evaluated by the government. “This possible decision, without the necessary counterparts towards the elimination or reduction of obstacles that affect the competitiveness of the national industry, could have very bad consequences for the entire industry and, in particular, for chemistry. This situation reinforces the need to accelerate the measures of the government's positive agenda relating to the New Gas Market, which should only have effects on the competitiveness of gas, energy and the supply of petrochemical raw materials derived from oil and gas in three or four years”, he concludes.
Source: agrolink
