The deficit recorded in chemicals was the highest in 2021

Brazil imported 60.5 million tons of chemicals in 2021, disbursing US$ 60.7 billion in total for the acquisition and setting new importation records as indicated by data from the Brazilian Chemical Industry Association, which has kept a sectoral trade balance record since 1989.

In comparison to the 2020 results, the monetary value of imports increased by 46.7 %; the number of products purchased also increased significantly at the rate of 17.4%, putting pressure on the national industry and displacing Brazilian products in the domestic market.

Imports overview

When compared to the 37.5 million tons of products purchased in 2013, the year that – until now – had shown the largest trade balance deficit in the history of chemicals, which accounted for US$32 billion at the time, 2021 showed an increase in purchases worth 61.3%, mainly in terms of organic chemicals and products purchased by agribusiness representatives. It was also observed that imports from Asia (excluding the Middle East) increased rapidly at 105.5%, while the average growth rate for imports from other regions remained low (31.6%), making Asia the most important supplier of chemicals to Brazil. The cost of importing chemical products from Asia was nearly US$ 17.6 billion, resulting in the greatest sectoral trade imbalance: a deficit of US$ 16 billion.

Chemical products exports

Brazilian exports of chemicals in 2021, in turn, led to US$14.5 billion in earnings after having grown 32.3% in comparison to the previous year. Such growth occurred mainly due to the 18.7% increase in average prices combined with the resuming of sales to neighboring countries, especially MERCOSUR members, which had been severely impacted by the COVID-19 pandemic. In terms of quantities, 16.4 million tons were handled, up 11.5%, a rate impacted by reductions in the exported volume of chlorine and alkalis (-43.0%), industrial additives (-6.7%), and thermoplastic resins (-4.5%).

Trade deficit 

The deficit in the trade balance of chemicals has reached the record level of US$ 46.2 billion in 2021, surpassing recent estimates by ABIQUIM itself, which had forecasted a value 51.8% higher than the US$ 30.5 billion recorded in 2020 and 44.4% higher than that of 2013, the previous deficit record.

In terms of trade with the major regional economic blocs, Brazil showed a surplus only in relation to neighboring countries and historical trading partners that are members of MERCOSUR and ALADI with trade balances of US$ 1.4 billion and US$ $615 million, respectively, in 2021.

However, overall negative performance was recorded in relation to the EU and Nafta, which together exceeded a deficit of US$ 20.4 billion, in addition to the previously mentioned growing imbalance with Asia (deficit with this region grows from US$ 4.3 billion in 2010 to US$ 16 billion in 2021).

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