Chinese chemical imports soar by 70%, increasing Brazilian idleness

Imports of Chinese chemical products, taking into account a basket of 77 inputs important to the domestic chemical industry, jumped 70% in the first half of the year, increasing the idleness of petrochemical plants and factories in the country, which currently stands at around 30%, according to a survey by the Brazilian Chemical Industry Association (Abiquim).

During the same period, domestic production of chemicals for industrial use fell by 10%, while imports rose by 8% in volume. “This is a very serious moment, with an outbreak of imports based on artificial prices,” said André Passos Cordeiro, the association’s head.

According to the executive, the pandemic has already disorganized the global chemical industry. With Russia’s invasion of Ukraine, Asia now has access to cheaper raw materials, prompting producers in the region to cut prices even further.

On the consumer side, major centers such as Europe and the United States adopted protective measures –the U.S. government had already imposed a 25.7% tariff on various Chinese products, including chemicals– and volumes were diverted to unprotected markets such as Brazil.

“We are more dependent on imports than in the recent past. The numbers can be confusing because there has been a drop in international chemical prices, but in terms of volume, there has been an increase in imports,” he said.

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