Sales by Brazilian petrochemical distributors down 46.6% in 2021: Adirplast

Brazil's largest petrochemical distributor association Adirplast said Jan. 20 that sales by its associated resin distributors in 2021 decreased 46.6% year on year to 234,220 mt, compared to 2020 when volume sold was 438,392 mt.

The sales reduction was expected due to factors such as inflation, lack of energy and a high US dollar that "made it very difficult not only for Adirplast members, but for entrepreneurs from different sectors," said the association's president Laercio Goncalves in a press release.

The modest recovery of the economy in recent months avoided a greater fall. "Positive factors, such as the increase in the GDP, which was around 4.5%, were also felt by our market," Goncalves said.

According to the association, the demand for energy in the world is still high and raw materials will not have their prices reduced, and with elections and the World Cup in sight, the scenario will only be clearer in the second half of the year.

Goncalves said that global consumption was not the same as it was pre-pandemic, but they were optimistic about the coming months.

For 2022, the association expects a gradual recovery for the Brazilian markets, although there are still many challenges to be overcome.

"Experts say that we will have a growth of 1.5% of GDP. In addition, the packaging sector predicts stability with small growth compared to 2021. The supply of resins should be slightly higher compared to 2021, including the opportunities and demands for recycled resins, PCRs and Biopolymers. Altogether, the plastics sector should grow 5% this year," Goncalves said.

Adirplast is the largest association of resin distributors in Brazil and represents around 40% of the distribution market in Brazil.