Chemical Industry Chemical Industry in the Americas – Part 3: Argentina and Peru
Argentina seems to have overcome its crisis: After 2003, the growth of the Argentinean economy has been cat a constant high level. But a high inflation and a constant scarcity of energy stoke the fears of resurgence of the crisis... More in the third part of our market report series "Chemical Industry of the Americas".
With a good economic situation of several big domestic customers (agriculture, constructions and automotive industries), Argentina has a high demand for chemical goods analysts expect. Due to shortages of the energy and gas supply, the Argentinean chemical industry can not cater all demands: Especially fertilizers are imported on large scale (imports rising by 84 percent during the first nine months of 2011).
The country's domestic chemical industry grew by only 3.9% percent while the import of chemical goods expanded by more than one quarter in the same time. The pharmaceutical industry turned out to be another driving force with double–digit growth rates and huge chance for importers and domestic producers alike, analysts believe.
Energy Projects in Argentina Underway
Foreign producers of plastics and polymers can profit from high demands of the country's automotive and construction industries: Imports of these products grew by 31 percent during the first nine months of 2011, GTAI analysis indicate.
Despite these good figures, some analyst fear that the Argentinean Economy Crisis of 1998 to 2002 could resurge as unemployment, poverty and inflation are still on a very high level and the development of new energy sources still has a long way to go. If the expansion of the Atucha nuclear power plant near Buenos Aires or the Yacyretá Dam and hydroelectric power plant can bring a change has yet to be shown.
Peru: Great Potentials For Pharma and Life–Science
Great potentials for life science companies in Peru: Cosmetic sales in the country are expected to rise by 15 percent, exceeding a total off two billion US $ in 2012. Apart from domestic producers, especially companies from Turkey and China compete for market shares in Peru.
Also pharmaceuticals, paints and coatings and agrochemicals expect solid growth rates of around five percent, analysts say. Since Peru's chemical branch can not provide all raw materials and feedstock for the country's domestic industry the imports of basic chemicals and half–finished goods is expected rose by 26.1 in 2011 to a total of US $ 3.2 billion.