Pre-salt can stimulate chemicals to invest to reduce imports

The advance of oil production – mainly in the pre-salt layer-in Brazil can be an investment opportunity for the chemical industry reduce the dependence on imports in the medium and long term. The year 2018 has been marked by fluctuations and foreign exchange pressure on the sector. "Various inputs are imported because we don't have to produce everything here. In the coming years, there is a scenario conducive for investment due to the competitive potential of the pre-salt. This will change the industry, "points the owner of Maxiquim Consulting market, Solange Stumpf. According to the latest survey of the Brazilian chemical industry Association (Abiquim), the segment of industrial chemicals presented 1.84% advance in the volume of domestic sales from January to September over the same period of the previous year. Already the production index registered 2.62% indentation on the same basis. The rate of capacity utilisation was at 77%, one point below the recorded in the same period last year. "The industry is walking a little aside, we saw a drop in production and imports are still high," says the President of Abiquim, Fernando Figueiredo. In January-September, the external chemical purchases totaling $ $31.6 billion, a rise of 13.4 percent compared to the same period of 2017. "Overall, the sector was better than last year in terms of volume. But there was a very large oscillation due to strike of truckers and elections. The trade balance was unfavourable, the import has grown to meet the demand, "says Solange. Forbes explains that raw material prices have suffered double impact with the appreciation of the dollar. "Brazil is not a country that way price in petrochemical chain. If the raw material goes up out there, we have two: increases the product itself and on currency conversion ", he explains. Director-member of Abiquim silicones, Paulo Vianna, the product surged to 13% in sales until September. The growth forecast to 2018 should stay between 5% to 7%. "It's quite significant in relation to GDP and is due to an increase in demand for silicon technology, option to replace petroleum-derived raw materials." However, exports had dropped, by influence of the exchange rate. "The South American market suffered a dramatic devaluation of the local currency and it ended up generating a negative impact on exports," says Vianna. Perspective to 2019 To Solange, the expectation is for a continuation of the advancement of the sector in the next year, influenced by the improvement of the economic environment. "There is a tendency to get out of the crisis and higher GDP growth. The industry tends to grow 3% to 4%, "estimates. Business marketing director Dow polyurethane for Latin America, Edilson Machado, sees a favorable scenario for the sector improves plaintiffs keys for the chemical industry. "It must be a positive year for threads that have focus, such as civil construction, automotive and comfort, such as mattresses and pillows. We expect a resumption of the economy and less political turmoil, "says. Foo claims to see with good eyes the signs of the future Government of Jair Bolsonaro for his economic agenda. "We hope that the necessary reforms are made, starting with social security, that can bring balance to public spending, and also the tax, which should have a positive impact for all productive sectors." Vianna has a similar vision. "The political change, focused to the market, it must promote our industry in 2019. We believe in continuity of growth. " Solange check the potential for resumption of sales and markets drive infrastructure and civil construction to justify optimism. "It's an opportunity to seize this moment of resumption. The sector needs investments to become more sustainable. "