Brazil’s deficit in chemical products stands US$ 43.3 billion by November

Brazil continues to import chemicals than it exports. According to the Brazilian Chemical Industry Association (Abiquim), the sector’s trade deficit reached US$43.3 billion until November 2023. During this period, imports amounted to US$56.7 billion, while exports stood at US$13.4 billion.

Certain chemical products witnessed a significant surge in imports. Notably, plasticizers rose by 63.1%, thermoplastic resins (14.1%) and their intermediates (14.4%), basic petrochemical products (12.7%), and chemical intermediates for detergents (4.7%).

The chart below shows the evolution of the imports of chemicals by Brazil. The data is from DataLiner.

Imports of Chemicals to Brazil | Jan 2019 – Oct 2023 | WTMT

Source: DataLiner (click here to request a demo)

Abiquim’s statement raises concerns about the importation of specific products at “predatory prices,” averaging 24.4% lower than those of the same period last year, posing a threat to the domestic chemical industry and causing an imbalance in the internal market.

On the flip side, Brazilian chemical exports saw a 9.8% decrease in physical quantities from January to November this year.

Abiquim explains that this decline is attributed to the economic challenges some of Brazil’s key trading partners, especially Argentina face. Another contributing factor is the ‘artificially sustained competitiveness’ of inputs (natural gas and energy) and Russian raw materials acquired by Asian countries at favorable prices due to the war with Ukraine.

November Figures

In November, Brazil imported US$4.7 billion worth of chemical products, marking a 10.3% decline compared to October and an 18.1% drop from November 2022. The decrease is attributed to a 37% average price reduction for these items.

Meanwhile, exports in November amounted to US$1.3 billion, experiencing a 1.5% decrease compared to October and a 6.9% drop from the same month in 2022.

Source: CGN

Click here to access the original text: https://cgn.inf.br/noticia/1393947/deficit-do-brasil-em-produtos-quimicos-soma-us-433-bi-ate-novembro-diz-abiquim

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