It is reported that Brazilian chemical producers are working hard to lobby the government to increase import tariffs on Brazil′s main polymers and petrochemical products from 12.6% to 20% in order to slow down the influx of cheap imported products.

Abiquim, the Brazilian Chemical Industry Association, stated that the influx of cheap imported products from abroad has put Brazilian chemical companies in a difficult situation. The lack of economic profitability forces some member companies of Abiquim to consider idling their factories.

Abiquim has proposed up to 66 proposals to increase import tariffs on some petrochemical products and fertilizers, including polymers such as polypropylene, polyethylene, polyethylene terephthalate, polystyrene or expanded polystyrene. Other chemical trading groups and enterprises have also made requests to increase import tariffs. The Brazilian Foreign Trade Commission has concluded its public consultation phase and is expected to make a decision on whether to raise import tariffs in the coming weeks.

When Brazil has always relied on imports to meet its domestic demand for chemicals, the ultra-low prices from foreign competitors have caused the operating rate of Brazilian chemical plants to drop to 65% or even lower. In the first quarter of 2024, Brazil imported a record 61.2 million tons of chemicals while exporting only 14.6 million tons.