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, Government & Legislation, Materials Suppliers

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

Material Insights: PP production issues, preparing for NPE

January 26, 2015 1:38 pm ET

Production problems in Texas add more complication for polypropylene, Entek has new equipment ready to show compounders at NPE and we take a look...    More

Image

J6 Polymers to buy Stepan unit

January 26, 2015 12:22 pm ET

NORTHFIELD, ILL. — Stepan Co. plans to sell its specialty polyurethanes systems business to J6 Polymers LLC in a cash deal.    More

Image

UK legislators debate fracking

January 26, 2015 12:19 pm ET

LONDON — An influential group of members of Parliament has called for a moratorium to be imposed on fracking for shale gas as politicians...    More

Image

Oxo-biodegradable lobby slams 'scaremongering'

January 26, 2015 12:16 pm ET

Single-use plastic carrier bags made from biodegradable material should be exempted from the government’s proposed 5p-a-bag levy in England,...    More

Image

2014 leaves some resin firms in the black while others struggle

January 23, 2015 2:37 pm ET

On the financial side, 2014 was good for Hexcel Corp., so-so for Celanese Corp. and it could have been better for Omnova Solutions.    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