Recently, survey data released by Standard & Poor's Worldwide showed that 30% of Latin American chemical companies expect their performance in the second half of the year to be pessimistic due to high interest rates and tight financing conditions. Another 70% of chemical companies expect their prospects for the second half of the year to remain stable, but no company believes the outlook is optimistic.
  S & P Global said: "We believe that multiple industries in Latin America, including retail, housing construction, aviation, car rental, telecommunications and cable TV, remain fragile due to high interest rates. This has led to poor economies in Latin America and affected the profits of chemical companies." Currently, inflation has fallen in major Latin American economies, but interest rates remain high, with interest rates in Brazil and Mexico at 13.75% and 11.25% respectively. Standard & Poor's Global said high interest rates have weakened demand for chemical-related products such as plastics, polyester fiber, ethylene, acrylic acid, nitrogen fertilizers and fertilizers, causing prices to fall. Coupled with new supplies entering the market, profit margins of the Latin American chemical industry have been significantly compressed so far in 2023.
  Standard & Poor's Global also said that although no Latin American chemical company expects an optimistic outlook for the second half of the year, the prospects of downstream industries such as automobiles are more optimistic and may boost the chemical industry. However, expectations from the Latin American construction and engineering industries, which are also important downstream chemical industries, are extremely negative, and relevant chemical producers may be affected. Source: Sinochem New Network