São Paulo –Imports of chemical products were up 15.9% in Brazil in the first two months this year from the same period last year, driven mostly by purchases of intermediate goods for fertilizer manufacturing. The figures were supplied by the Brazilian Chemical Industry Association (Abiquim). Intermediate goods for fertilizer manufacturing include chemicals such as nitric acid, sulphuric acid and phosphoric acid.
According to Abiquim, imports of these products were up 14.69% in the first two months this year from the first two months of 2012. The association released material last week in which it claimed that these results and other industry performance data point to a worsening of the overall scenario for the national chemical industry, attesting to the lack of conditions to compete.
The industry had poor results in both output and sales during the period. Output was down 3.71% from January and February last year, and domestic sales were down 1.58%. In the last 12-month period ended February 2013, output was up by only 0.28% and domestic sales were up 4.35%. In the 12-month period ended January, the rates were 2.4% and 6,51%, respectively, according to the Abiquim.
Apparent consumption in Brazil was up 2.3% in January and February, showing that the increase in consumption was due to imports. Presently, the Brazilian chemical industry has a low rate of use of installed capacity, which stood at 80% in January and February, down three percentage points from the same period in 2012. The Abiquim claims that the rate of unused capacity is high for the industry’s standards.
*Translated by Gabriel Pomerancblum
