Brazilian coating economy starting to slow

Brazil’s coating industry is suffering along with many global sectors, according to Dilson Ferreira, Executive President of ABRAFATI Brazilian Coatings Manufacturers Association.

While 2011 continues to be a good year for coaters in South America and specifically Brazil, the growth rate is falling tremendously, Ferreira said at the Aug. 25 ABRAFATI Forum of the Coatings Industry in São Paulo.

"In the first half of this year, sales of residential coatings increased by only 0.5 % compared to the same period in 2010. We should see a slight increase this second semester, that will lead to a 1 % increase for the year", says Ferreira.

Brazilian coaters saw as much as 10% growth from 2009 to 2010, but that rate is slowing.

“Due to the present uncertainties and the delicate international scenario, consumers are adopting a more conservative attitude by delaying purchases of coatings for remodels and self-building. Similarly, retailers avoid keeping stock and replace products more slowly", Ferreira says. "However, we believe business will pick up at a stronger pace next year, when we expect a 4 % increase in sales.”

He says the overall growth of the coatings industry in Brazil this year should be 1.3 %, reaching 1.377 billion liters, whereas a 4 % expansion of sales is expected in 2012.