Economic Crisis, Weak Demand For Isocyanate In Latin America
With the continuous depreciation of the currency and the spread of the global economic crisis, the market of isocyanates and polyols in Latin America suffered heavy losses. Recently, media reports reported that most market participants attributed this round of sluggish demand to the depression in the US housing market, and predicted that with the further fall of the US real estate market, many producers of MDI, TDI and polyols in Latin America will be faced with a further weakening.
A local operator said that because of the bank's restrictions on loans and mortgage loans, the market demand has been falling since November last year, "our sales volume is naturally much worse than before." Because the demand for finished goods in the downstream market has greatly declined by 30% to 50%, the circulation of goods is still slow even when dealers are constantly selling low prices.
At the same time, manufacturers are also troubled by the cost of raw materials imported due to the weakening of currencies. Market analysis pointed out that Chile Bissau, one of the most robust currencies in Latin America, has been declining in recent years and fell to its lowest level in nearly three months in February 19th.
Argentina Peso has also been affected by investor concerns about future demand and has sunk to its lowest level since December 2002. The peso exchange rate against the US dollar has declined continuously since last August and has shrunk by 1/3 so far, forcing local central banks to take corresponding measures to curb the sharp devaluation of their currencies.
Even some Latin American countries that use the US dollar as a currency of circulation are not having a good time. Ecuador is one of them. As banks tighten their purse strings, the country has been unable to provide basic loans for economic development because of financing difficulties, and oil export trade as one of the country's largest sources of income has also been hit by the economic crisis.
Many market participants also said that the controversial Venezuelan President Chavez (HugoChavez) won another election in February 15th, which made many market participants worried about the risk of cooperation with the country. Analysis reveals that the economic crisis will exacerbate the country's economic problems.
93% of Venezuela's total exports are contributed by oil exports, and oil revenues account for half of the government's budget. With the sharp decline in crude oil prices since the second half of last year, local analysts predict that Chavez is likely to adopt a series of economic adjustment policies including raising taxes.
Many companies may not want to cooperate with Venezuela because they are in arrears. Local market conditions are not very good and demand is very cold. MDI, TDI and polyols are widely used in the production of polyurethane foam. At present, the spot price of MDI in Latin America is 2300 to 2500/ tons (CFR Latin American port). The local isocyanate and polyol suppliers include a series of industry giants such as Dow, BASF and so on.
Editor: vivi
- Related reading
The Idea Of Wenzhou Zipper Industry Integration Will Be Implemented This Year.
|- Exhibiting knowledge | Shanghai Rongtai Signed A Special Sponsor For 2010 Shanghai World Expo Reception Chair
- Glimpse of exhibition | Xinyang Fully Investigates Heavy Metal Emission Enterprises Such As Leather.
- Listed company | Trillion Chi Shares And Other Four Companies Landed On The Shenzhen Stock Exchange In June 10Th.
- Exhibiting knowledge | June Italy Florence Men'S Wear Exhibition Business Visit
- Exhibiting knowledge | July 2010 Brazil St Paul International Merchandise Trade Exhibition
- Exhibiting knowledge | 2010 China St Paul Textile And Footwear Trade Exhibition, Brazil
- Exhibiting knowledge | The Twenty-Second Japan Tokyo International Fashion Exhibition (Top Fashion Exhibition In Japan)
- Exhibiting knowledge | The Situation Of Barrier Free Facilities In The Park During The Expo Operation
- Exhibiting knowledge | 2010 Mexico International Clothing, Fabrics And Accessories Exhibition
- Glimpse of exhibition | 2010 Mexico Autumn International Fashion And Fabric Expo INTERMODA
- Zipper Enterprises Seem To Set Up Overseas Offices.
- Eight Major Industries Such As Hebei Leather Are Promoting Light Industry.
- German Textile Testing Agency Landed In USA
- 09 Years In January, Shenzhen Footwear Exports Increased By 10.6%
- Shoe Business Owners Are Hard: Recruiting Harder And Harder
- MITSUBISHI Chemical Company Announces Closure Of Mountain Factory
- The Idea Of Wenzhou Zipper Industry Integration Will Be Implemented This Year.
- Japan'S New Richest Clothing Industry
- Britain Leverages London Fashion Week To Promote Garment Industry
- The Competitiveness Of The Shoe Industry Is Very High.