Brazil hikes anti-dumping tariff on US PVC

Spanish Market: Petrochemicals
28/05/25

Brazil increased its anti-dumping tariff on suspension-grade polyvinyl chloride (S-PVC) imports from the US to 43.7pc from 8.2pc.

The foreign trade committee Gecex made the decision during its extraordinary meeting on 27 May. As per standard procedure in Brazil, the ruling is expected to be published in the country's official gazette within one to two days, finalizing its enactment.

The tariff increase follows a broader effort to protect domestic polymer producers, after Brazil raised overall import tariffs on polymers to 20pc from 12.6pc effective 15 October 2024, in response to industry concerns.

As part of these protective measures, Brazilian PVC producers Braskem and Unipar Carbocloro petitioned the government to raise the anti-dumping duty on US PVC imports, citing market distortions and unfair pricing practices.

Industry repercussion

A large international PVC trader supplying Brazil described the sharp increase in anti-dumping duties on US S-PVC as excessive, questioning the rationale behind the move.

Despite concerns about unfair pricing, the trader argued that the market is not flooded with US PVC, making the increase to 43.7pc from 8.2pc appear extreme.

The adjustment, the trader said, could effectively block US suppliers, forcing buyers to seek alternative sources such as Taiwan or Mexico.

The trader called the move unprecedented, saying that a fourfold tariff increase would significantly disrupt market access. He also emphasized uncertainty surrounding the true motivations behind the hike and questioned whether Brazilian authorities were considering the broader consequences for importers and domestic consumers.

Another market source who sells US-made S-PVC to customers in Brazil told Argus the measure is effectively an embargo. "The measure virtually blocks the entry of this material into the country," the source said.

Braskem told Argus that it is evaluating the decision before commenting. Unipar Carbocloro also said that it would have a clearer position after internal meetings about the decision and that it would return for comment.

Brazil PVC imports

Despite government efforts to limit imports, Brazil's PVC shipments rose by 38pc in 2024, reaching 548,573 metric tonnes (t) from 398,830t in 2023, according to data from the Brazilian trade ministry database Comexstat.

The value of those imports climbed by 33pc year-on-year, totaling $460mn. The top suppliers in 2024 were Colombia, the US, Egypt and Argentina, maintaining strong trade volumes despite tariff adjustments.

By Fred Fernandes

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