2023-10-27 00:11:18
© Reuters. Deficit in chemical products is US$ 35.8 billion per year, says Abiquim
Abiquim (Brazilian Chemical Industry Association) reported this Thursday (26.Oct.2023) that the deficit of chemical products in Brazil reached US$35.8 billion. The data refers to the difference in the volume of imports (US$46.7 billion) in relation to sales of national products abroad (US$10.9 billion). For the year’s consolidated figures, the association predicts a deficit of US$48 billion.
In a statement, the association explains that imports reached record numbers due to artificial prices practiced by Asian countries, which purchase raw materials for products at prices well below market values due to trade agreements with Russia. The country suffers from heavy sanctions from European countries and sees the Asian market as the best source to trade its commodities, even at reduced prices. Read the full statement (PDF – 808 kB).
These “predatory” imports, as Abiquim defines them, push the production of Brazilian plants to the lowest level in the last 17 years. The average level of factory idleness is close to 35%, which is “excessively high”, according to the association.
In the year to date, up to September, increases were recorded in the volumes of imports of plasticizers (76.6%), thermoplastic resins (18%), basic petrochemical products (12.3%), chemical intermediates for detergents (6.7% ), among other various chemical products for industrial use (14.4%). Products from the Asian market saw a 30% reduction in import prices.
To balance the chemical sector’s trade balance and leverage the use of plant capacities, Abiquim asked the government to take protectionist measures to protect the national industry.
According to the director of economics and statistics at Abiquim, Fátima Giovanna Coviello, the government needs to end the 10% reduction in the tax rate on imports of chemical products, applied unilaterally by Brazil, and take short-term actions to facilitate access to materials raw materials and energy inputs under conditions equivalent to those of the main global players.
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