To begin with, we would request your views on performance of Brazil in the global petrochemical industry? How has Braskem positioned itself in this sector?
Brazil has been experiencing a strong increase of the demand for plastics in the late years, due to better economic policies, better income distribution and political stability. The petrochemical market follows the good moment of brazilian economy. Besides, the sector is now consolidated in Brazil. Braskem will play a leading role in the region and has several plans of expansion, such as the JV with PDVSA in Venezuela, a ethanol based Polyethylene plant and a new polypropyelene unit. As other parts of the world, the current challenge is the increasing prices of crude and feedstocks.
Can you let us know about the market share that synthetic fiber sector embarks in petrochemical industry worldwide? What is Braskem stake in this sector?
CMAI establishes synthetic fiber, in general, as responsible for 15% of the worldwide polypropylene demand in 2008. The forecast for the next years (2009–2012) is the maintenance of this market-share.
Braskem has a large participation on this sector with partnerships on nonwoven and fiber. Moreover, the synthetic fiber sector embarks 17% of participation on Braskem sales.
Decline of the dollar accompanied with global crude prices are flaring issues today. How do you see the aftermath of this situation?
Petrochemical business will have to adapt to this new scenario with high crude prices. We believe that less competitive worldwide units will be shutting down or reducing output as new capacities come onstream. Prices will be naturally set to a new plateau, but with lower margins for the next years.
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.