Higher prices drive chemical imports up 7.7% YoY, says industry association

Brazilian chemical imports rose 7.7% year-on-year in January to US$5.4 billion, driven by higher prices amid an energy crisis triggered by Russia’s invasion of Ukraine, according to a foreign trade report from the Brazilian Chemical Industry Association (Abiquim). Compared to December, however, there was a decrease of 2.2%.

According to the entity, since August, when the country hit the ceiling of 6 million tonnes imported, the volumes have retreated month after month and, for the first time since the beginning of 2022, did not exceed 4 million tonnes.

On the other hand, imports of thermoplastic resins rose 43.4% in January year-on-year and 25.6% compared to December to 285 thousand tonnes. According to Abiquim, the increase in imports comes in the wake of “a harmful policy of tariff reduction, adopted unilaterally in a complex international context and at an extremely inopportune economic moment.”

Exports, in turn, stood at US$ 1.2 billion, virtually stable compared to January 2022, and rose 3.9% compared to December, with just over 1.2 million tonnes shipped — increases of 4% and 9 .9%, respectively.

As a result, the trade balance deficit totaled US$ 4.2 billion in January, accumulating US$ 63.4 billion in 12 months, a new record.

In a note, Abiquim’s director of economics and statistics, Fátima Giovanna, points out that 2023 should be a decisive year for the sector, with the formatting of a State policy of deindustrialization.

“Brazil has an important window of opportunity to reindustrialize itself with its comparative advantages. However, they will only become competitive advantages if there is enough regulatory predictability and the strengthening of a competitiveness agenda,” she says.

Source: Valor Econômico

To read the original report, click on: https://valor.globo.com/empresas/noticia/2023/02/15/puxada-por-precos-importacao-de-produtos-quimicos-sobe-77percent-em-janeiro-informa-abiquim.ghtml

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