The Hydrogen Peroxide Industry To Be Benefited In Brazil As Petrobras Cut Natural Gas Prices By 11 Percent
The Energy Giant in Brazil Slashed Prices of Natural Gas By 11 percent
Starting from February 1st, Petrobras will slash the natural gas prices for its consumers by 11.1 percent in comparison to the November-January period because of reduced international prices of oil and the devaluation of the Brazilian currency, as per the state-held oil and gas firm.
The natural gas price is updated by Petrobras quarterly and accounts for the international price of the crude oil benchmark, Brent Crude, along with the foreign exchange rate for the Brazilian reais.
Request Access For Regular Price Update of Hydrogen Peroxide
In the last three months, prices of oil dipped by 11.9 percent. At the same time, the reais exchange rate devalued by 0.2 percent, which is the amount of Brazilian currency to convert into dollars increased by 0.2 percent.
Additionally, the contracts for natural gas effective from 2022 comprise a drop of the pricing formula to 14.40 percent of Brent prices compared to 16.75 percent of Brent prices.
Petrobras reported that its consumers' final natural gas price only partially relies on the company's sales prices. Also, it relies on the supplier's portfolio, the margins of each gas distributor, as well as the state and federal taxes and consumer tariffs.
Petrobras is presently facing bigger challenges compared to the updated natural gas prices. The shares of the company have plunged since Brazil's leftist President Luiz Inacio Lula da Silva joined the office a week ago.
By December-end, Lula chose his political ally, Jean-Paul Prates, making him the new Petrobras chief. Prates blamed the current leadership of the company claiming it was driving Petrobras "off a cliff" due to its only emphasis on oil and gas as well as its insufficient concentration on the energy transition.
This week Petrobras levelled up its refinery's security as a retort to threats of attacks on the infrastructure. The threats arrived as Brazil's previous president, Jair Bolsonaro's supporters, stormed Brazil's Congress, the Supreme Court and the presidential palace this weekend. The riots flared after the slim victory of President Ignacio Lula da Silva over Bolsonaro in October and have continued since then.
Peróxidos do Brasil Funds USD 78m in Expansion
Peróxidos do Brasil is a joint venture between PQM (Produtos Químicos Makay) and the Belgian group Solvay with an investment of USD 78 million in order to expand its hydrogen peroxide production capacity in Chile and Brazil.
It is anticipated that the demand for the chemical compound will persist in increasing in South America during the approaching years, primarily driven by new pulp mills and new rounds of growth.
The hydrogen peroxide market in Brazil will advance at an average annual rate of 7 percent during 2021-2025, while exports will advance at a rate of 9 percent a year.
At Brazil's Curitiba industrial plant, Peróxidos, the market leader in South America's production capacity, will rise by 20,000 tonnes to 250,000 tonnes a year following funding totalling USD 18 million.
Also, Peróxidos has a permit in Chile to use hydrogen peroxide for treating salmon lice. In order to substitute exports from Brazil with local production, the group is putting in USD 60 million to construct the country's first plant.
Furthermore, all the investments on the way will boost the production of Peróxidos to 300,000 tonnes a year by 2024.
According to Procurement Resource, the article states that Hydrogen Peroxide industry in Brazil will benefit as Petrobras cuts Natural Gas prices by 11 percent.
Read More About Hydrogen Peroxide Production Cost Reports - REQUEST FREE SAMPLE COPY IN PDF
The prices were cut due to reduced international prices of oil and the devaluation of the Brazilian currency. Furthermore, Peróxidos, the market leader in South America's production capacity, will invest in expansions which will further the market's development.
As per our analyst review, the Hydrogen Peroxide prices in Latin America, especially Brazil, recently lowered owing to the frail market sentiments from downstream paper and pulp industries. However, the development in natural gas production in the USA assisted the commodity's price drop by lowering the prices of upstream anthraquinone in the regional market.
Later, the prices began to increase due to recovering demand from the paper and pulp industry. But the Natural Gas production in the local market was unable to lower the costs of upstream anthraquinone owing to increased export rates to Europe.