Brazil turns to new polyethylene, PVC sources amid US antidumping duties

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Antidumping duties have raised Brazil's cost to import US polyethylene – which is used in packaging material – by 200 dollars, though the impending decision had already been weighing on the market and affecting imports for months.  

The US is still Brazil’s main supplier, providing 70% of total polyethylene imports. Some believe it will stay that way for a while, but the market is still on the lookout for new sources. 

Between January and August, polyethylene imports from the US fell by 10%. In contrast, volumes from Egypt increased elevenfold. 

Why Egypt? Well, Brazil and Egypt have a bilateral agreement that benefits their products with a tariff exemption.  

For the same reason, PVC shipments from Egypt to Brazil spiked after the country increased the antidumping duty against US material, while the US has been reducing its market share in Brazil each month.  

But price isn't everything. Egypt has a limited supply of polyethylene and PVC available to export. So other suppliers will have to emerge as well to meet Brazil’s demand.