Brazil is expected to emerge as one of the biggest PET resin producing nation in global landscape in the coming years. The sharp increase in production is expected due to new capacities additions which are expected to commence their operations in next two years. For instance, Brazil based PetroquímicaSuape, is expected to start its new 900 million pound of PET resin plant in early 2013 in north eastern Brazil. Major PET resin producer in Brazil PET Resin market is M&G POLIESTER S.A.
PET resin with its unique properties like eco-friendly in nature, 100% recyclable, rigid & transparent, safe and strong etc., have resulted for its high demand in food & beverages market.
According to 6Wresearch, the Brazil PET Resin production is expected to reach 1,021.3 thousand tons by 2016, at a CAGR of 16.1% from 2011-2016.Carbonated soft drinks bottles are the major consumers of PET resin in Brazilian market.
In-spite of these expectations, rising prices of crude oil in the international market can hamper the growth trajectory of PET resin players. Frequent hikes in crude oil pricesput an unwanted pressure on almost all petrochemical commodities such as PET resin.These prices are further expected to increase in the near future as well,which would in turn act as a biggest threat to the industry.