Chemical production in Brazil increased 5.85% in May compared with the same month last year and dropped 1.24% from April, according to figures released Monday by the Brazilian chemical industry association, Abiquim.
Domestic sales of chemicals increased 9.65% year-on-year, but fell 0.14% month-to-month.
The chemicals price index rose 4.93% compared with April. A year-on-year comparison was not included in the figures. From January to May, the index grew 6.06% compared with the same period last year. Abiquim said the lower production in April and May, compared with the
previous months, was the result of a decrease in demand among major consumer sectors, such as the automobile and construction sectors.
National consumption in the first five months increased 0.54% compared to the same period in 2011.
In the statement Abiquim's director for economics and statistics, Fatima Giovanna, also criticized Brazilian government moves to boost the country's economy.
"These isolated actions have still not had the desired effect," he said.
According to Giovanna, the country "urgently" needs greater structural changes to reduce production costs and raise competitiveness with foreign imports. He pointed to high electricity and natural gas prices as particularly hindering the Brazilian chemicals industry.
