Brazil's foreign trade committee Gecex has postponed a meeting at which it was expected to decide whether to impose new anti-dumping levies on polyethylene (PE) imports from the US and Canada.
Gecex at its 29 May meeting was scheduled to discuss its investigation into November allegations by Braskem, Brazil's sole PE producer, that US and Canada producers are exporting PE to Brazil at prices below what is considered fair market value. But that meeting has been postponed with no new date scheduled, according to a notice on the Gecex website.
Some polyethylene (PE) distributors and traders in Brazil halted sales this week on speculation that Gecex at the now cancelled meeting would impose anti-dumping PE taxes.
Large-scale buyers have been adding to inventories this week, as they expect costs to increase once any new import fees takes effect. Speculation around the announcement has prompted traders to accelerate PE imports ahead of any import levies.
As a result of the expected anti-dumping fees, Braskem was heard to be preparing to raise its domestic PE prices in June, capitalizing on higher import costs that would make locally produced material more competitive.
Industry sources suggest that the company's planned price increase is part of a broader adjustment to Brazil's shifting trade policies.
