Brazil becomes the largest producer of polyurethane in South America

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So far, Brazil is the largest producer of polyurethane in South America. Brazil is one of the fastest growing economies in the world, with an average annual GDP growth of more than 5%. In addition, the 2014 World Cup and the 2016 Olympic Games will also stimulate market demand. The annual growth rate of polyurethane production in South America is expected to reach 4.6%, and the output in 2016 will reach 906,500 tons. Production in the South American region has been recovering since 2010 and has maintained a growth trend. In 2011, the total output was 725,300 tons.

According to the survey, in South America, soft foam is the largest market for polyurethane, accounting for 58% of the market share and an annual growth rate of 4.5%. As Latin American countries such as Peru and Paraguay gradually build new soft foam factories, the competition in this area is fiercer. However, some special foams, such as those containing flame retardants, are not very demanding in South America because South America is still one of the most traditional areas in the world, and innovation and technology applications are lagging behind.

The survey also shows that under the inspiration of strict legislation, people’s awareness of energy conservation has become stronger, which has greatly increased the demand for polyurethane insulation systems. However, some prices have advantages, and insulation materials that can be easily purchased are still the rivals of polyurethane insulation materials. Supported by the construction sector, the growth rate of rigid foam is expected to be around 5.1%, because retail stores and shopping malls have higher requirements for insulation materials and generally choose polyurethane insulation materials.

The elastomer market is one of the slowest developing areas in the downstream of polyurethanes. Although the slurry market was subject to higher prices, it has also seen an increase in the use of OEM projects in Colombia and the use of the construction industry in Chile has increased after the 2011 earthquake. The demand for adhesives and plasticizers in the South American market is relatively small. The polyurethane adhesive market is highly competitive.

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