International.
Demand for polyethylene (PE), a key raw material for plastics production, is growing in Latin America thanks to an expansion in the middle class, but the region's current and projected PE capacity will remain below demand, leading the region to import approximately 50% of its needed PE by 2025, according to a new study by IHS.
The market analyst found that the demand for PE (in all its forms) in Latin America currently exceeds 7 million metric tons (MT). However, the region currently has a net deficit of more than 3 MT of polyethylene, and by 2025, the region's net PE deficit will approach 5 MT, according to the IHS Special Report.
Brazil is the main market for PE in the region, accounting for 36% of demand, followed by Mexico with 26%, Argentina continues with 10%, while Colombia and Chile have 5%. In terms of capacity, THERE is PE production in only five countries in the region: Argentina, Brazil, Colombia, Mexico and Venezuela.
Home to approximately 634 million people, including a large youth population, "Latin America expects to see its GDP fall to 0.7% in 2016, but should recover thereafter, driven by increased consumer demand for a large number of durable goods that are made from plastics," said Rafael Amiel, director of economics at IHS Global Insight.
