03/26/2012

www.gupta-verlag.de/polyurethanes

Polyurethane Chemicals and Products in South America: IAL Consultants publishes new market study

Polyurethane production volumes in South America started recovering in 2010 soon after the adverse effects resulting from the global crisis. Since then, polyurethane products have experienced an overall growth in South America, with total production of polyurethane products reaching 725,300 t in 2011. By 2016 this figure is forecast to be 906,500 t, equivalent to a mean growth of 4.6 % p.a. [image_0]Flexible foam is the largest market for polyurethane chemicals in South America, accounting for 58 % of production and growing at about 4.5 % p.a. The major end-use is in the manufacture of mattresses where there is little competition from imports. Flexible foamers are consolidating, becoming more competitive and new companies are arising in some Latin American countries such as in Peru and Paraguay. Overall, stability in interest rates and longer financial installments in the most important flexible foam producing countries have allowed for continued expansion in the furniture and bedding sectors. Specialised foams, like those containing fire retardants, are not in great demand. South America remains one of the most traditional regions of the world and implementation of innovative applications tends to lag behind. However, rising awareness on energy efficiency, followed by more stringent local legislations, will contribute to an increase in demand for polyurethane insulation systems; however, these will still face competition from other less expensive and readily available insulating materials. Rigid foam is thus expected to follow a more dynamic growth of about 5.1 % p.a. also stimulated by the construction of multinational retailers and shopping malls, where the building standards are higher and polyurethane is a prefered material. The CASE markets will experience the fastest growth rates in South America with the exception of elastomers which are forecast to have the slowest growth rates of all polyurethane products, despite countries like Brazil and Argentina having significant production of footwear. Polyurethane coatings are recognised for their enhanced performance but their use continues to be limited because of their higher prices. Polyurethane coatings have otherwise experienced sound use in Colombia's OEM sector and in Chile's architectural sector following investments in reconstruction after the earthquake of 2011. The demand for polyurethane adhesives and sealants in South America is relatively small and related to the construction sector. Polyurethane binders face competition from alternative products. Unsurprisingly, Brazil is by far the largest producer of polyurethane products in South America and uses approximately 72 % of the associated raw materials consumed in the region. Brazil, as a "BRIC” country, is one of the fastest developing economies in the world with an annual average GDP growth over 5 %. In addition, the upcoming 2014 World Cup and the 2016 Olympic Games to be held in Brazil have propelled construction levels with investments being made in infrastructure as well as in building new hotels and other facilities. Polyurethane producers of all types (flexible foam, rigid foam, CASE, and binders) have benefitted from these.Polyurethane Chemicals and Products in South America
IAL Consultants, London, UK
EUR 7,000

www.gupta-verlag.de/polyurethanes