Latin America ink market overview

According to experts' estimates, the market value of the Latin American ink market reached 400 million U.S. dollars. In many markets (such as Brazil), sales and sales have increased, but in other regions (for example, Mexico), sales (in US dollars) are due to the loss of foreign exchange rates. The decline. Enrique Perez Cirera, general manager of Sun Chemical Ink (GPI) in Mexico, said: “In Mexico, the ink market was relatively stable in 2003, but the price drop caused a great impact. Therefore, although sales volume has increased, Sales have been negatively affected."

The growth rate of the ink market in a certain area is related to the GDP growth rate in the area. According to the annual analysis of the economic analysis group led by Michael Gavin, a global financial services company UBS Securities in Greenwich, Connecticut, the average GDP growth rate in Latin America in 2003 was 1.1%. According to official information released by the industry, the overall ink market in Latin America rose by at least 3% in 2003.

According to the analysis of the UBS group, the average GDP of Latin America in 2004 is estimated to increase to 3.9%. If this conclusion can be established, the ink market in this region will expand by 5.0% to 6.0%.

As regional inflation continues to fall, both domestic currency flows and the exchange of dollar currency flows should increase. In 2003, the inflation rate in Latin America reached 6.7%, but it will fall to 6.1% this year, and it will continue to decline in 2005. As a result of economic recovery and expansion, the foreign exchange rate of the region’s currency will become more stable this year.

Market growth challenges

As loan interest rates and bankruptcy rates remain high in some regions of Latin America, the combination of ink and consumer goods markets in these regions continues.

Sanchez S. Mexico A. De C. V. Ernesto Sanchez, general manager of the company, analyzed: “This year we faced the same problem of fund recovery as last year. This includes companies with stable growth. Even the payment rate of packaging companies like Masterpak is very, very slow.

The economic growth of the five economic powers in Latin America (Mexico, Brazil, Argentina, Colombia, and Chile) is not the same, because they belong to different free trade organizations. Among them, Mexico is free to enter and exit the US market through the North American Free Trade Agreement (NAFTA); Brazil, Argentina, and Chile can enjoy more favorable treatment in the EU than in the United States through the Mercado Comum NoCone Sul (MERCOSUL); Colombia through Andean The regional integration agreement (Andean Pact, later known as the Cartagena Accord) has access to Europe and North America. This mutually beneficial agreement also affects the economic growth of various countries. In some countries, such as Mexico, it has signed a large number of free trade agreements.

Major ink economy in major economic powers

Let’s take a closer look at Latin America

The state of the ink market in several major economic powers and related influencing factors:

Mexico

Mexico's ink market is estimated at $155 million and will continue to increase at a rate that is several times GDP growth.

Mexico’s GDP growth can rise to 3.9% this year, compared with only 1.3% last year. This year's inflation rate is also expected to fall from 3.7% in 2003 to 3.5%. However, it is expected that the Mexican peso's exchange rate against the U.S. dollar will fall from 164:1 last year to 175:1. Since Mexico’s GDP reached 680 billion U.S. dollars, Mexico is the largest and most important economic market in Latin America.

Mexico's ink market is in different market segments, that is, the application areas, and its growth rate is also different, among which packaging printing has recovered the best.

According to a December 2003 report issued by the U.S. Department of Commerce in Mexico City, due to the tariff-free agreement between Mexico and the United States, Mexican carton and carton printing is also expected to increase by 3.0% to 5.0%.

Brazil

According to the news from the industrial association ABIGRAF (short for Associacao Brasileira da Industria Grafica) in Sao Paulo, Brazil, the sales and sales volume of inks have increased. Among them, the sales volume has increased from 58,000 tons to 61,500 tons, and the sales volume has been from 1.957. Billion dollars increased to 208.6 million U.S. dollars.

Brazil's GDP growth rate is expected to be 3.1%, which is a huge improvement over the 0.5% in 2003. Some of the economic indicators are even more exciting: industrial output increased by 5.8% in the first quarter compared with the same period last year, while retail sales increased by 7.5%. At the same time, Brazil’s inflation also dropped from 9.6% in 2003 to 6.0% today. However, the exchange rate of the Brazilian currency real (rea1) against the U.S. dollar is expected to fall from 2.98:1 to 3.15:1, which will further affect Brazilian imports.

The value of Brazil's GDP is 551 billion US dollars, which makes Brazil the most important economic market in South America. According to the report of ABIGRAF, the largest ink market in Brazil is in the publishing sector. In 2003, this market grew by 5.0% to reach US$1.1 billion; the packaging sector increased by 16.0% to US$920 million; The form sector has increased by 17.1% to reach US$750 million; other fixed markets have increased by 9.5% to reach US$460 million.

Argentina

Argentina’s GDP growth is expected to reach 4.9% this year, which is more stable than the 6.5% increase in 2003. Although inflation had plummeted from 41.0% in 2002 to 2.6% last year, it is estimated that it will rebound to 9.3% this year. The Argentine peso’s exchange rate against the US dollar is expected to remain stable at 2.75 as in 2003. :l.

Argentina is the main market for the global ink industry. According to a report from FAIGA, the overall economic situation in the first half of this year increased by 6.1% from the same period of last year. As the economy continues to pick up, the country’s ink market is expected to reach 2001 sales of 120 million US dollars again.

Colombia

It is expected that Colombia’s GDP growth this year will be 3.5%, which is nearly one percentage point higher than last year’s 2.6%. In the first quarter of 2004, compared with the same period of last year, industrial output rose by 4.6% and retail sales increased by 7.3%. Inflation will remain at 5.7% in 2004, down from 6.1% last year. The exchange rate of the Colombian peso to the US dollar will also remain stable at 2.854:1 as in 2003.

Colombia's GDP reached 93 billion U.S. dollars, which is also an important market for the global ink industry. According to the statistics of the Colombian Trade Association, the country’s printing industry grew by 4.6% last year and the printing industry’s average sales amounted to US$1.2 billion.

Chile

Chile’s economic growth this year is expected to be 4.6%, which is a significant improvement over the 3.3% in 2003. The inflation rate is similar to last year and is expected to remain at 2.0% to 3.0%. This year, the exchange rate of the Chilean peso against the US dollar will rise from 625:1 in 2003 to 623.5:1.

With a GDP value of US$ 89 billion, Chile is also an important market for leading companies in the ink industry. Sun Chemical Ink, for example, has two production sites in San Diego.

For a long time, Chile is known for its open and transparent operating environment in Latin America. It is also an important member of South American Free Trade Organization (MERCOSUL). MERCOSUL has signed a free trade agreement with the European Union and a free trade agreement with the United States. It is also in the late stage of negotiations.

Other countries

Other smaller countries in Latin America have also shown signs of growth in the ink market. For example: Ecuador’s GDP will increase from 2.0% last year to 3.0% this year, and inflation will increase from 6.0% in 2003. 5% dropped to 4.5%. With the help of the Andean Regional Integration Agreement (Andean Pact), Ecuador will expand its exports and will drive and support the growth of the packaging and ink market.

Conclusion

In 2003, the overall ink market in Latin America grew by at least 3%. Today's signs indicate that the increase in 2004 will be even greater. The GDP, GDP growth rate, inflation rate, exchange rate of the country’s currency to the US dollar, sales of the ink market, and major ink market sectors of several major countries in the document.

Reprinted from: Printed in China