-- Trade agreements attract investors to Mexico, raising demand for
petrochemicals
SAO PAULO, July 6, 2015 /PRNewswire/ -- Although the biggest
revenue segments for the Mexican petrochemicals market in 2014 were
acrylonitrile-butadiene-styrene (ABS) (381.7 million) and styrene
butadiene rubber (SBR) (332.6 million), poly butylene terephthalate
(PBT) and styrene-butadiene-styrene (SBS) markets are expected to
grow at the highest compound annual growth rate (CAGR) from 2014 to
2020, at 11.3 percent and 8.7 percent, respectively. The main
reason for this growth is the steady stream of investments by
automotive, electronics, and appliance companies, which are
attracted to Mexico's low
production costs and strategic geographic location.
Photo
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New analysis from Frost & Sullivan, Mexico Petrochemical
Market Opportunity Analysis (https://www.frost.com/q294473800),
finds that the Mexican petrochemicals market earned revenues of
$1.06 billion in 2013 and estimates
this to reach $1.64 billion in
2020.
If you are interested in more information on this study, please
send an e-mail to Francesca Valente,
Corporate Communications, at francesca.valente@frost.com.
"While higher vehicle production is the main market driver for
the petrochemical market, there is a marked trend toward making
vehicles lighter to enhance movement and save fuel,"
said Frost & Sullivan Energy & Environmental Industry
Analyst Mariana Guercia.
"This translates to higher demand for plastic materials to replace
metal parts, but simultaneously, it also decreases the amount of
rubber required per car."
The influx of participants, especially from Asia, is intensifying competition in the
market and thereby, lowering the average price of resins. The
volatility of raw material prices is further constricting profit
margins, as it is turning the market toward price-based
competition.
However, the market has considerable Government backing, which
makes it financially viable to do domestic business and keeps the
market buoyant in spite of the falling prices.
"As Mexico has signed multiple trade agreements with various
nations, manufacturers from most countries do not have to pay
import taxes," noted Guercia. "The low costs of establishing
business stimulate foreign investments, especially in new plants
and factories of automotive, appliances and electronics industries,
which are the main end users of these resins."
Overall, due to the favorable environment created by the
Government and the country's advantageous location, the
petrochemical market in Mexico is
expected to grow at a steady pace.
Mexico Petrochemical Market Opportunity Analysis is part
of the Oil & Gas
(http://ww2.frost.com/research/industry/energy-power-systems/oil-gas)
Growth Partnership Service program. Frost & Sullivan's related
studies include: North American Enhanced Oil Recovery Market,
Annual Global Power and Energy Outlook 2014, Global Oil and Gas
(O&G) Outlook 2014, and Investment Opportunities in the
Marginal Oil & Gas Fields in Southeast Asia. All studies included in
subscriptions provide detailed market opportunities and industry
trends evaluated following extensive interviews with market
participants.
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Mexico Petrochemical Market Opportunity
Analysis
9AB8
Contact:
Francesca Valente
Corporate Communications – Latin
America
P: +54 11 4777 5300
F: +54 11 4777 5300
E: francesca.valente@frost.com
http://www.frost.com