Fri Nov 15 08:20:59 UTC 2024: ## Brazil Launches Anti-Dumping Probe Against US and Canada on Polyethylene Imports
**Brasília, Brazil** – In a move that has surprised market participants, the Brazilian government has initiated an anti-dumping investigation into polyethylene (PE) imports from the United States and Canada. The investigation was triggered by a request from Braskem, the country’s sole PE producer, who alleges that imports from North America are being sold at unfairly low prices, harming the domestic industry.
Braskem claims that increased imports from the US and Canada, coinciding with a decline in PE’s domestic market and revenue, have caused significant damage to the Brazilian industry. The company cites dumping margins of 21.4% for US products and nearly 27% for Canadian products between April 2019 and March 2024. During this period, PE imports from the US and Canada surged by 91.7%, while domestic sales dropped by 8.6% and revenue decreased by 4%. Braskem’s market share in the domestic market fell from nearly 65% in April 2019 to 51.5% in March 2024.
The investigation is raising concerns among importers, who believe that anti-dumping tariffs will lead to a decrease in imports and an increase in local prices. Traders have pointed out that the US and Canada are major PE suppliers to Brazil, with the US accounting for 73% of imports from January to October 2024.
The investigation is expected to take several months, with involved parties having a 30-day deadline to respond to questions from the Brazilian government. Following this, five months will be allocated for hearings. The outcome of the investigation will likely have a significant impact on the Brazilian PE market, influencing import volumes, pricing, and the competitiveness of domestic producers.
First Piper 