Little impact on Brazil polymers from US tariffs

Spanish Market: Petrochemicals
03/04/25

The overall 10pc tariffs imposed by the US on Brazilian exports on 2 April are unlikely to significantly impact Brazil's polymers industry, as polymers exports to the US are minimal.

Brazil's polypropylene (PP) exports to the US during January-February 2025 hit 1,964t, down 22pc when compared with the same period of 2024, according to data from Brazilian trade ministry database Comexstat. The figure represents just 5pc of Brazil's total PP exports in the period, with the US ranked at the 12th most important destination.

In polyethylene (PE), Brazil exported 1,335t to the US during Jan-Feb 2025, down 30pc year over year. This represents 1pc of Brazil's PE exports in the first month, with the US ranked 18th.

There were no exports from Brazil to the US related to polyvinyl chloride (PVC), polyethylene thereftalate (PET), expanded polystyrene (EPS), and acrylonitrile butadiene styrene (ABS) in January and February.

However, Braskem, a Brazilian petrochemical company and the largest producer of thermoplastic resins in the Americas, felt the tariffs' impact on its shares today. Braskem's shares experienced a decline at the São Paulo stock exchange B3, with the stock trading at BRL 10.31 ($1.84) at noon, down 2.46pc from its previous close of BRL 10.57. In intraday performance the stock opened at BRL 10.50, reaching a high of BRL 10.84 and a low of BRL 10.30. The movement reflects ongoing market volatility and investor sentiment surrounding the company.

The Brazilian government criticized the US decision, describing the additional 10pc tariff as a violation of the country's commitments to the World Trade Organization (WTO). The measure adds to previous 25pc tariffs imposed on steel, aluminum, and automobiles, further complicating Brazil's trade portfolio with the US.

US trade surplus

According to Brazil's foreign relations ministry (MRE), US government data indicates that the US achieved a $7bn trade surplus with Brazil in goods in 2024. When including services, the surplus totaled $28.6bn, making Brazil the third-largest contributor to the US's global trade surplus. Over the past 15 years, the US has consistently recorded significant surpluses with Brazil, amounting to $410bn in goods and services.

The US rationale for the 10pc tariff — to restore balance and achieve "trade reciprocity" is inconsistent with the reality of enduring trade surpluses, the ministry said. In response, Brazil intends to collaborate with its private sector to protect domestic workers and companies while defending the multilateral trade system.

The Brazilian government stated that it remains open to dialogue with the US to reverse the tariffs and minimize their harmful effects. At the same time, it is evaluating all possible actions to ensure reciprocal trade relations, including appealing to the WTO.

The government highlighted the recent approval of the Economic Reciprocity Bill by the Congress, reinforcing its willingness to adopt reciprocal measures if necessary.

Anti-dumping duties possible

The Brazilian government on 14 November opened a possible measure relating to an anti-dumping investigation against PE resins imported from the US and Canada. Trump's promises to protect US industries have created uncertainties about whether Brazil would want to move forward with PE anti-dumping duties, but now it could be used as a possible retaliation for the new tariffs.

In 2024, total PE imports in Brazil reached 1.959mn t, increasing 40pc year on year, with North America representing 77pc of market share.

By Fred Fernandes and Terezinha Miranda

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

23/04/25

India, Saudi Arabia to establish two Indian refineries

Mumbai, 23 April (Argus) — India and Saudi Arabia will collaborate on establishing two refineries and petrochemical projects in India, according to an Indian government release today. Indian prime minister Narendra Modi met Saudi prime minister Mohammed bin Salman in Jeddah on 22 April, as part of the India–Saudi Arabia Strategic Partnership Council. Saudi Arabia in 2019 had pledged to invest $100bn in India in multiple areas including energy, petrochemicals, infrastructure, technology, fintech, digital infrastructure, telecommunications, pharmaceuticals, manufacturing and health. The government did not disclose further details, but industry sources said that one of the two refineries might be Indian state-run BPCL's planned refinery in Andhra Pradesh , which Saudi Arabia's state-controlled Saudi Aramco may join as an investor. The other one might be a refinery in Gujarat, under a partnership with Indian upstream firm ONGC and Aramco. But plans for a 1.2mn b/d refinery in Ratnagiri in collaboration with IOC and Adnoc have mostly been ruled out, because of logistical issues relating to the size of the refinery and land acquisition hurdles, among others. Saudi Arabia is the third-largest crude supplier to India, making up 15pc or 712,000 b/d of India's total imports in January-March, data from oil analytics firm Vortexa show. Saudi Arabia's share in the Indian market has declined, after Russia became India's biggest supplier following its war with Ukraine. Modi's trip to the Middle East comes close on the heels of US vice president JD Vance's visit to India on 21 April. The visit included negotiations for an India-US bilateral trade agreement and efforts towards enhancing co-operation in energy, defence, strategic technologies and other areas. JD Vance in India Vance said on 22 April at his speech in Jaipur that India will benefit from US energy exports and said the US wants to help India explore its own considerable natural resources, including its offshore natural gas reserves and critical mineral supplies. US president Donald Trump has pushed India to step up its purchases of US crude and LNG. Crude imports from the US doubled on the month to 289,000 b/d in March, of which 65,000 b/d was Canadian Cold Lake crude, according to trade analytics firm Kpler. The visits come at a time when geopolitical and trade uncertainty has risen, because of Trump's volatile tariff policies. By Roshni Devi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Circular Plastics to start up Vietnam recycling plant

23/04/25

Circular Plastics to start up Vietnam recycling plant

Singapore, 23 April (Argus) — Singapore-based regional plastic recycler Circular Plastics (CPC) is expected to start up its second recycling facility in Ba Ria-Vung Tau, Vietnam, in late May, a company spokesperson told Argus. The facility has a production capacity of 25,000 t/yr of recycled polyethylene terephthalate (rPET) flakes and 14,000 t/yr of rPET pellets. CPC currently produces 18,000 t/yr of rPET flakes and 14,000 t/yr of rPET pellets from its other facility located in Yangon, Myanmar. CPC is a producer of high-quality food grade recycled packaging material and supplies global beverage and consumer product companies. By Sihan Long Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US PVC demand outlook softens on weak housing

21/04/25

US PVC demand outlook softens on weak housing

Houston, 21 April (Argus) — US polyvinyl chloride (PVC) participants are downgrading initial demand estimates from nominal growth to more stable expectations in the coming months because of downbeat housing variables. Many US PVC participants throughout March and April said early signs from housing data and customer sentiment did not point to a robust housing construction season in the coming months. PVC buyers have been hesitant to build inventory under such conditions, further slowing consumption because many are unsure when or if end-user demand will support initial purchases. Privately-owned housing permits were at a seasonally-adjusted annual rate of 1.482mn units in March, according to data from the US Census Bureau and the Department for Housing and Urban Development (HUD). While March permits rose by nearly 2pc from February, they fell by less than 1pc from year-ago levels. Single family permits stood at 978,000 units, down by 2pc from the prior month and lower by less than 1pc from the same time last year. Housing starts in March were at a seasonally-adjusted annual rate of 1.324mn units, about 11pc below February rates but nearly 2pc higher than a year earlier. Single-family starts declined by about 14pc to a 940,000 unit rate from the prior month. The latest builder sentiment survey for April maintained a cautious view for the single-family homes market, reversing nominally weaker sentiment from March, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). Sentiment, though, remains well below the confidence seen at the start of the year, underpinning a weakening market. PVC participants are increasingly concerned that current and future tariffs imposed by President Donald Trump on critical trade partners will re-trigger inflation and thwart any future interest rate cuts by the Federal Reserve. Lower interest rates are largely regarded by PVC players as a bullish demand variable, especially in the housing sector. Federal Reserve chairman Jerome Powell did not ease market concerns last week, saying tariffs are likely to contribute to "higher inflation and slower growth" — or stagflation — and added markets were struggling "with a lot of uncertainty." Powell added that tariffs could challenge the Federal Reserve's dual mandate of maintaining price stability while fostering maximum job growth, leaving policymakers to wait for greater clarity on economic impacts before making any adjustments to interest rates. By Aaron May Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US Senate seeks coordinated cargo theft probes

14/04/25

US Senate seeks coordinated cargo theft probes

Washington, 14 April (Argus) — US rail and other transportation industries are urging Congress to move forward on a bill that would create a division within the Department of Homeland Security to coordinate investigations of organized cargo theft. The bipartisan Combating Organized Retail Crime Act of 2025 was introduced on 10 April by Senate Judiciary Committee chairman Chuck Grassley (R-Iowa) and senator Catherine Cortez Masto (D-Nevada). The bill, similar to a 2023 effort, calls for creation of an organized retail and supply chain crime coordination center to unite experts from federal, state and local law enforcement agencies, as well as retail industry representatives. The Class I railroads also operate their own police forces with powers equivalent to public law enforcement. Coordinating investigations in a timely manner is difficult because of the proliferation of different agencies. Railroad police officials are limited to carriers' facilities, while local police forces are unable to quickly investigate railroad thefts because they need specific permission to enter railroad property. "Organized criminal operations continue to evolve and escalate their targeted attacks against our nation's supply chain and retailers," Association of American Railroads chief executive Ian Jefferies said. The nation's largest railroads experienced a 40pc spike in cargo theft last year, costing carriers more than $100mn, AAR said. Rail thefts tend to be split between flash mob robberies and organized efforts by criminal networks, according to Danny Ramon, director of intelligence and response at logistics platform Overhaul. Flash mobs often target containers in urban areas, seeking valuable products such as apparel and footwear that they can quickly sell. These thefts often occur in regions near ports where containers are loaded onto trains, including Los Angeles, Chicago and Atlanta. But thefts in rural areas are becoming more prolific, Ramon said. They have become popular locations because it can take law enforcement an hour or longer to reach trains as opposed to minutes for urban rail cargo thefts. Rural areas also make it easier for groups to stage larger thefts. The organized groups tend to track trains from origin and monitor them along the way, breaking in during breaks in rural areas. They come prepared with equipment and cargo vans to enable them to quickly empty products from trains. Arizona has become a popular location for thefts because of its vast portions of rural area. In addition, many trains are heading east with containers of goods recently loaded from west coast ports. Thefts by criminal organizations have increased in part because of the ease in selling to individuals. The proliferation of on line websites have allowed these organizations to bypass traditional third-party middlemen and sell directly to consumers, Ramon said. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Recycled resin importers caught in tariff uncertainty

11/04/25

Recycled resin importers caught in tariff uncertainty

Houston, 11 April (Argus) — US President Donald Trump's evolving tariff policies have created tremendous uncertainty for US importers of recycled polymers, and constant halts and flip-flopping from the administration have led some to pause their US operations. Multiple importers told Argus that the constantly changing US tariffs on goods have upended business plans, and forced them to pause their US operations for the time being due to uncertainty about the taxes their material will face when it reaches US shores. "You have to have some confidence that conditions will hold in order to import," one trader told Argus . Trump's tariff rollout began on 1 February, when he announced that China would face a 10pc universal tariff, and the US's two largest trading partners, Mexico and Canada, would face 25pc universal tariffs. At the time, market participants speculated that the 25pc tariffs on Canada and Mexico would make operations and sales more expensive for Mexican and Canadian recyclers, particularly those that trade bales or finished resin across the US border. After some negotiations between world leaders, the tariffs on Canada and Mexico were delayed for 30 days, though the 10pc tariff on China went into effect as planned. The 25pc universal tariffs on Canada and Mexico were pushed back again on 6 March, but tariffs on aluminum — a significant competitor to rPET packaging — went into place on 12 March. The tariffs on aluminum have not been rescinded or paused, and the extra cost for imported aluminum as a result of the tariff could incentivize US consumer goods companies to use more PET in their packaging. On 9 April, the US put into place varying reciprocal tariffs on a number of countries that export recycled resin to the US, including India, Malaysia and Vietnam. While rPET and vPET pellets were excluded from the reciprocal tariffs, importers of rPE, rPP and PET waste were not excluded from the tariff. The same day, the reciprocal tariffs were pushed back 90 days in favor of a 10pc universal tariff that excludes Canada and Mexico. China and the US's reciprocal tariffs have escalated into a trade war, and currently material from China faces a 145pc tariff. Since the price is too high for most importers to be willing to pay, in essence all recycled resin imports from China are halted. China is one of the largest buyers of US virgin polyethylene https://direct.argusmedia.com/newsandanalysis/article/2675420), and the current trade war with China has the potential to increase domestic supply as exporters are forced to find new buyers for resin. Increased competition from oversupplied virgin resin could pull down recycled resin pricing. Until some stability in tariff policy returns to the US, traders and importers will continue to turn to other destinations outside the US to sell their recycled resin. By Zach Kluver Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more