Petrochemicals – Brazil – Civil construction to drive PVC consumption over next five years
Brazilian consumption of polyvinyl chloride (PVC) is expected to grow 7% a year over the next four to five years driven by the civil construction and infrastructure industries, president of national PVC association Instituto do PVC, Miguel Bahiense Neto, told BNamericas.
The industries will be boosted by preparations for the FIFA World Cup and Olympic Games to be held in Brazil in 2014 and 2016, respectively, Bahiense said.
“The projection reflects the favorable scenario for the civil construction industry, but we can’t forget that not everything that is planned in Brazil is actually accomplished,” said Bahiense.
In 2009, Brazilian PVC apparent consumption totaled 933,240t, down 10.5% from 1.04Mt a year earlier, while civil construction accounted for close to 70% of total PVC demand, according to figures from Instituto do PVC.
Bahiense also pointed out that Brazil’s PVC industry is capable of supplying the forecast increase in demand and expects imports to remain stable. Last year, imports totaled 285,768t versus 365,632t in 2008.
Brazilian petrochemical firm Braskem (NYSE: BAK), for example, is expanding its PVC capacity in Alagoas state by 200,000t/y. The new capacity is expected to come online in the first half of 2012. Braskem’s current PVC output is 550,000t/y, of which 245,000t/y is produced in Bahia state and 255,000t/y in Alagoas.
In addition, Solvay Indupa, a subsidiary of Belgian chemical group Solvay, has plans to boost its PVC capacity in Brazil to 350,000t/y. Expansion works are expected to be concluded by the end of 2010 or beginning of 2011.
Solvay Indupa is also constructing a unit to produce 60,000t/y of sugarcane-based ethylene, which will be fed into the company’s PVC production and generate 100,000t/y of “green” PVC.
“Brazilian demand can be fully supplied by the current capacity in the country, planned expansions and further increases that might be necessary. Imports, however, are always an alternative to the market,” Bahiense added.
The full interview with Bahiense will be published on Monday, for subscribers only.
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