Brazil tops previous chemical imports record with USD 62.5 in September

Brazilian imports of chemical products from January to September reached a record US$ 62.5 billion, up 47.4% year-on-year and above the total recorded in 2021, according to the industry association Abiquim.

Despite the slowdown in the quantities purchased in the last two months, the sharp rise in the average prices of products traded between Brazil and its commercial partners, 43.3% in imports and 30.6% in exports, the upkeep of economic activity in high levels in the production chains that require chemicals and the seasonality of the third quarter explain, to a large extent, the worsening of the sector’s trade balance indicators.

See below the track record of the volume of chemical products (HS codes 28 and 29) imported by Brazil between January 2019 and August 2022, according to DataLiner.

Brazilian Chemical Imports | Jan 2019 – Aug 2022 | WTMT

Source: DataLiner (click here to request a demo)

From January to September, exports of chemical products totaled US$ 13.5 billion, an expansion of 33%. As a result, the trade deficit reached US$ 49 billion, surpassing the record negative balance of US$ 46.3 billion recorded in the whole of last year.

“An unprecedented and appalling deficit of US$ 65 billion is expected for this year’s year-to-date figures,” says Abiquim.

According to Abiquim, the value of chemical product imports has exceeded US$ 7 billion per month since May, which is twice the average monthly purchase before the covid-19 pandemic.

According to Denise Mazzaro Naranjo, the association’s director of foreign trade and administrative affairs, the chemical industry had the potential to leverage the generation of value for the Brazilian economy. Nonetheless, the recent adverse scenario has prevented the opportunities created by increased demand from being converted into investment and domestic production.

“Focused on overcoming this challenging moment, the Brazilian chemical industry advocates for the adequate addressing of energy issues and competitive raw materials, incentives for sustainable chemistry, tax burden, and, most importantly, a balanced international insertion,” wrote the executive in a note to the market.

Source: Valor Econômico

To read the full original article, please go to: https://valor.globo.com/empresas/noticia/2022/10/07/importacao-de-produtos-quimicos-soma-us-625-bi-ate-setembro-bate-recorde-e-supera-total-de-2021.ghtml

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