BMI's Executive Summary

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The Sector At A Glance

Key Insights On The Petrochemicals Sector Of Brazil

Industry Overview

Brazil’s petrochemicals industry commenced operations in 1955 with the start-up of the Cubatao Oil Refinery. Most of the Brazilian petrochemicals industry is concentrated in São Paulo. The firms operating in the industry have a complex ownership structure, leading to delays in the decision-making process for expanding production and technological innovations. Major players in the industry include Brazil-based Braskem, Copesul, Petroquímica União (PqU), Rio Polimeros (Riopol), Ultrapar and Politeno.

Industry Performance

Brazil’s domestic sales of thermoplastic resin increased 11.5% year-on-year (y-o-y) to 2.5mn tonnes during January-September 2006. Linear low-density polyethylene (LLDPE) and high-density polyethylene (HDPE) logged the highest sales growth during the period, with LLDPE sales reaching 247,600 tonnes and HDPE sales touching 482,200 tonnes. Low-density polyethylene (LDPE) sales increased 0.4% y-o-y, while polyethylene (PP) sales grew 10.5% y-o-y. Exports of thermoplastics stood at 767,700 tonnes, increasing 6.1% y-o-y. LLDPE exports touched 117,300 tonnes and HDPE exports 233,700 tonnes.

Industry Developments/P>

Petroquimica Paulinia (a joint venture between Braskem and Brazil-based Petrobrás Química [Petroquisa]) outlined plans to invest BRL900mn (US$418.24mn) in a 350,000 tonnes per annum (tpa) PP plant at Paulinia, Sao Paulo. Brazil-based Itaboraí reported that it has granted Brazilian federal energy company Petrobras and Ultrapar permit to establish the US$8.3bn petrochemical complex at Comperj. Brazil's Oxiteno plans to invest US$70mn to increase its ethylene oxide (EO) output at its Maua plant to 88,000tpa by 2008. Brazil-based Petroquimica Suape revealed plans to establish a purified terephthalic acid (PTA) plant at Suape port in Pernambuco. The plant would have a capacity of 550,000tpa of PTA and is expected to become operational in 2009.

Industry Forecast

According to Abiquim, Brazil’s ethylene and propylene consumption is forecast to touch 6.5mn tpa and 4.3mn tpa, respectively, by 2015, increasing 116% and 150% compared to 2005. The country’s naphtha deficit is expected to surge to 3.4mn tonnes by 2015. Naphtha demand is forecast to climb to 14.6mn tpa by 2010.

Contents

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Chapter 1 - Executive Summary

Industry Overview

Industry Performance

Industry Developments

Industry Forecast

Chapter 2 - SWOT Analysis

Brazil Petrochemicals Industry SWOT

Brazil Economic SWOT

Brazil Business Environment SWOT

Chapter 3 - Market Overview

Market Structure

The Braskem Story

Sector Performance

Chapter 4 - Industry Trends And Developments

Trade Opportunities With US

Trends

Projects And Expansions

Petrobras’ Plans In Petrochemical Sector

Chapter 5 - Industry Forecast Scenario

Table: Brazil Petrochemicals Sector – Historical Data and Forecasts

Chapter 6 - Economic Outlook

Table: Economic Activity – Historical Data And Forecasts

Chapter 7 - Company Monitor

Profiles

Braskem

Copesul

PqU (Petroquímica União)

Rio Polimeros

Ultrapar

Politeno

Dow Quimica

Chapter 8 - BMI Forecast Modelling

How We Generate Our Industry Forecasts

Petrochemicals Industry

Cross Checks

Competitive Landscape for Latin America Petrochemicals Reports: Sample of Companies Ranked

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Comparative company analyses and rankings by US$ sales, % market share, employee size, registration date and ownership structure. Company SWOTs (Strengths, Weaknesses, Opportunities, Threats) on all leading international and national operators in each market, including competitive intelligence in the following: Overall geographic presence, competitive positioning against local companies; production capacity, sales and market share; joint ventures, foreign direct investment, projects and acquisitions strategy.