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Mexican GDP growth in 4Q lowest since 2021

  • : Crude oil, Metals, Oil products
  • 25/01/31

Mexico's economy slowed in the fourth quarter to its lowest pace since early 2021, as the agriculture and industrial sectors dragged on growth.

Mexico's gross domestic product (GDP) growth slowed to annualized rate of 0.6pc, statistics agency Inegi reported. This is down from an annual 1.6pc in the third quarter and 2.1pc growth in the second quarter, which was the strongest quarter last year.

The result marks the slowest growth in 15 quarters for Mexico, coming in below estimates.

This was largely due to annualized 4.6pc decline in the agriculture sector, swinging from 4.1pc growth in the third quarter as drought conditions return.

Inegi reported the industrial component of GDP also contracted, down 1.7pc in the fourth quarter, compared with a 0.5pc expansion in the previous quarter, on slowing construction and persistent declines in the oil component.

Services, meanwhile, expanded an annualized 2.1pc in the fourth quarter, compared with a 2.2pc expansion in the previous quarter.

Inegi reported full-year GDP growth at 1.5pc in 2024, slowing from 3.3pc in 2023 and the lowest level since the pandemic-stricken downturn in 2020.

By James Young


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Naphtha no longer competitive feedstock: Braskem


25/05/12
25/05/12

Naphtha no longer competitive feedstock: Braskem

Sao Paulo, 12 May (Argus) — Brazil-based petrochemical producer Braskem is pursuing a strategic shift in polymers production by favoring natural gas liquid (NGL) feedstocks and moving away from naphtha. Naphtha is no longer a competitive feedstock in the petrochemical sector, driving the need for greater flexibility in raw material sourcing, chief executive Roberto Ramos said Monday on the company's first-quarter earnings call. The transition to lighter feedstocks is part of a broader initiative to enhance efficiency, reduce costs, and improve competitiveness amid evolving global petrochemical dynamics, Ramos said. The company's plan focuses on increasing the use of ethane and propane as primary feedstocks in Mexico and Brazil. In Mexico, Braskem has inaugurated an ethane import terminal, which will provide a stable supply to its operations. The facility has the capacity to store 80,000 b/d of ethane, while the polyethylene (PE) plant processes 66,000 b/d. This surplus storage has prompted considerations for a new PE unit in Mexico to maximize the available feedstock. In Brazil, Braskem aims to reduce reliance on naphtha-based PE production by integrating more natural gas-derived inputs. The company is evaluating projects to utilize feedstocks sourced from shale gas extracted in Argentina's Vaca Muerta formation. The petrochemical complex in Rio Grande do Sul, which operates with a mixture of naphtha and natural gas, is among the facilities targeted for increased gas utilization. Braskem's Rio de Janeiro facility is also undergoing expansion of its gas-based assets, adding two new furnaces that crack ethane and propane to increase capacity to 700,000 t/yr. This increased production is anticipated to lower unit production costs and improve profitability. The move to gas-based production is expected to optimize operations and align Braskem's facilities with cost-effective supply chains, Ramos said. The shift comes as global trade dynamics continue to influence raw material availability. While US-China trade agreements have temporarily eased tariff pressures, Braskem is trying to position itself to navigate long-term supply chain uncertainties by diversifying its production inputs. Ramos has also indicated potential investments in ethanol dehydration technology, which would allow select facilities to convert ethanol into ethylene, further supporting PE production with an alternative renewable feedstock. Production and sales Braskem said its first-quarter domestic resin sales fell by 4pc from the same period in 2024, but sales were little changed from the prior quarter. Domestic resin sales totalled 807,000 metric tonnes (t) in the first quarter, down from 839,000t a year earlier. Resin sales volumes remained in line with the fourth quarter last year, but the company highlighted a quarter-on-quarter increase in PE and polypropylene (PP) sales volumes of 2pc and 3pc, respectively, offset by a 16pc reduction in PVC sales. In Mexico, Braskem Idesa's PE sales fell by 11pc from the same period in 2024 and by 5pc quarter-on-quarter, as the company is looking to manage inventory ahead of a planned maintenance shutdown in the second quarter. The plant utilization rate reached 79pc, rising from the fourth quarter on higher ethane availability through the Fast Track solution. But utilization fell by four percentage points year-on-year, mainly due to reduced supply of ethane from Mexico's Pemex. Braskem posted a first-quarter profit of $114mn, rebounding from a loss of $273mn a year earlier and a loss of $967mn in the fourth quarter last year. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Russia urges decision on Bolivia Li deal


25/05/12
25/05/12

Russia urges decision on Bolivia Li deal

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Aramco sees 'steady' oil demand growth in 2025


25/05/12
25/05/12

Aramco sees 'steady' oil demand growth in 2025

London, 12 May (Argus) — Global oil demand is on course for "steady growth" this year despite uncertainties over trade, according to state-controlled Saudi Aramco's chief executive Amin Nasser. "For the second quarter we are seeing resilient growth despite the impact of tariffs and the uncertainty that we are seeing in the market," Nasser said on Aramco's first-quarter earnings call today. "The fundamentals are very strong." The outlook for the global economy has deteriorated since US president Donald Trump announced a wide array of import levies in April. But the US and China today announced a deal to reduce some bilateral tariffs . And talks with other countries continue. Oil demand could increase more than currently anticipated depending on the result of trade talks, Nasser said, adding that Aramco estimates oil demand grew by 1.7mn b/d in the first quarter compared with the same period last year. Asia is responsible for most of the demand growth, but there is also an uptick in the US, particularly in demand for transport fuels, Nasser said. By Aydin Calik and Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU, UK diesel imports from Mideast, India fall in April


25/05/12
25/05/12

EU, UK diesel imports from Mideast, India fall in April

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