Braskem complaint prompts PP dumping investigation

By Bob Moser
PLASTICS NEWS CORRESPONDENT

Published: April 9, 2013 3:57 pm ET
Updated: April 9, 2013 4:00 pm ET

Related to this story

Topics Materials, Materials Suppliers, Government & Legislation

SÃO PAULO, BRAZIL – The Federal Secretary of Foreign Trade (Secex) opened an anti-dumping investigation this week into imports of polypropylene resin from India, South Korea and South Africa, prompted by a complaint from local petrochemical giant Braskem that it's being harmed by low-cost imports.

Secex will also investigate whether South Africa and India are providing subsidies to domestic PP producers. Braskem claims that resin imports from the three countries have increased 582 percent over the past five years, from 19,600 metric tons between April 2007 and March 2008, to 133,900 tons between April 2011 and March 2012.

Brazil's Chamber of Foreign Trade (Camex) has issued trade actions favorable to Braskem in the past, including in December 2010, when it applied an anti-dumping measure against PP resin imports from the United States for five years, at US$82.77 per ton.

Braskem is the a leading producer of thermoplastic resins in Latin America and the U.S., following its purchase of polypropylene assets of Dow Chemical Co. The company serves 70 percent of Brazilian demand in PP, PE and PVC resins, but foreign resin imports have gained Brazilian market share in recent years.

Brazil's annual consumption of PP is estimated at 1.4 million tons this year, with resin quoted between US$2,200 – US$2,400 per ton. Braskem has been a target of criticism by plastics processors over its perceived dominance of the resins market.

Brazil's import tariff on foreign PP is 14 percent, but could increase. Brazil's federal government raised the import tariff on PE in late 2012 from 14 percent to 20 percent.

Brazil has some of the highest import tariffs on resins in the world, compared to a global average of 7 percent, according to the Brazilian Plastics Industry Association (Abiplast). Imported processed plastic goods currently cost about 40 percent less than domestic options, Abiplast says.


Comments

Braskem complaint prompts PP dumping investigation

By Bob Moser
PLASTICS NEWS CORRESPONDENT

Published: April 9, 2013 3:57 pm ET
Updated: April 9, 2013 4:00 pm ET

Post Your Comments


Back to story


More stories

Image

Chemtrusion, Mytex Indiana compounding plant set for expansion

January 29, 2015 1:35 pm ET

Japanese and American partners in a compounding plant in Indiana plan to expand the facility.    More

Image

DuPont-Chenguang JV to produce fluoroelastomers in China

January 29, 2015 12:30 pm ET

DuPont Fluoropolymer Solutions and Zhonghao Chenguang Chemical Research Institute Co. Ltd. are proceeding with a 50-50 joint venture to serve the...    More

Image

Barington may force a vote for Omnova board at annual meeting

January 28, 2015 3:52 pm ET

It looks like the battle between Omnova Solutions and an activist investor is heading to a vote.    More

Image

PolyOne sees sales, earnings per share climb, profit decline

January 28, 2015 3:00 pm ET

North American compounding leader PolyOne Corp. posted record adjusted earnings per share in 2014, even as the firm's sales saw modest growth and its ...    More

Image

China XD to catch up on Sichuan project

January 28, 2015 2:41 pm ET

Automotive compounder China XD Plastics Co. Ltd. (Nasdaq: CXDC) has been working on its fourth production base in Nanchong, Sichuan province since 201...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events