brazil to Impose Duties on US, Canada polyethylene
SAO PAULO – May 16, 2024 – brazilian sellers are advising customers to expedite their purchases of polyethylene (PE), anticipating the government’s imposition of antidumping duties (ADDs) on imports from the U.S. and Canada. This move, expected to begin in June, stems from concerns over unfair competition. The Foreign trade Chamber (Gecex) is likely to approve the duties based on a proposal from Braskem. For more details, read on.
SAO PAULO – Brazilian polyethylene (PE) sellers are urging customers to accelerate purchases, anticipating the government will impose antidumping duties (ADDs) on PE from the U.S. adn Canada starting in June.Key developments include:
Braskem’s Proposal: A PE ADDs proposal from Braskem could be approved this week.
Price Increases: Sources indicate prices are rising in anticipation of the measure.
* PVC Duties: ADDs on polyvinyl chloride (PVC) are still under government analysis.
According to sources, the foreign Trade Chamber (Gecex), the government body overseeing foreign trade, may approve the ADDs on U.S. and Canadian PE at a meeting scheduled for May 29.
Gecex initiated its inquiry into potential PE dumping by the U.S.and Canada in November,following a proposal by Braskem,which argued unfair competition.
ADDs are tariffs on imported goods sold below their normal value, potentially harming domestic producers. They are frequently enough used as a protectionist measure against unfair competition.
Brazilian PE sellers are advising customers to make purchases now, warning that ADDs could take effect as early as june 2.
While this strategy could boost sales, the expectation of ADDs on U.S. and Canadian PE aligns with recent protectionist measures implemented by President Luiz Inacio Lula da Silva’s management.
ICIS contacted Gecex regarding market expectations of ADDs approval. In a writen response, Gecex stated, We cannot make any comments or provide information regarding the progress of the investigation. likewise, we cannot make any inferences regarding market information provided by third parties.
These ADDs would be provisional, with Gecex having up to 18 months to decide on their permanence. The measure would be revoked if PE dumping from the U.S. and Canada is not proven.If proven, the measure could become permanent until further notice.
DISTRIBUTORS WARN OF HIGHER COSTS
In letters to customers reviewed by ICIS, two distribution companies warned of the ADDs, with one assuming their implementation in June.
Vinmar’s Brazilian subsidiary cautioned customers that any potential financial loss
from ADDs would be borne by the customer, not the distributor.
We are on the verge of the potential entry into force of ADDs on PE imported from the US and Canada.We would like to emphasize that Vinmar, as always, cannot be held responsible for any financial loss of the importer if any import tariffs are implemented or adjusted during the logistic process of delivering the cargo to its recipient,
Vinmar stated in its letter.
The letter further clarified that logistic process of delivering the cargo
encompasses the entire process from container loading in the U.S. or Canada to delivery at the Brazilian port of destination.
Vinmar had not responded to a request for further comment at the time of writing.
another distributor’s letter stated: As of June 2025, the ADDs will come into effect, which will directly impact costs of PE materials. in addition, Braskem announced a price adjustment for June, which should result in increases in the cost of materials.
Braskem had also not responded to a request for comment at the time of writing.A source at a distributor noted that such warnings about potential price increases are common in the chemicals sector.
The source added that their company has included a clause in contracts since early 2025, referencing the Gecex investigation to mitigate potential higher costs from ADDs.
Gecex is also investigating a proposal for ADDs on PVC from Braskem and Unipar,citing unfair competition.Braskem management has publicly stated they were lobbying the government for this measure’s approval, as PVC is one of the plastics most affected by imports.
