The Brazilian PE import market likely to slow until new, lower tariffs go into effect on Oct. 1

13-Aug-13

Brazilian manufacturers and others that import thermoplastic resins will likely slow their buying until new, lower tariffs go into effect on Oct. 1, as per sources in Platts. Brazilian Minister of Finance Guido Mantega announced on Aug. 1 that the government will not renew an import tariff increase on 100 products, including polyethylene grades such as HDPE, LDPE and LLDPE. The import tax is applied on products from countries outside the Mercosur group of South American countries, and is annually set on Oct. 1. The last increase occurred in 2012 when the government moved the import tariff for polyethylene from 14% to 20%. Under the government's new decision, the tariff for polyethylene will return to its previous level of 14% on Oct. 1. Amid the expected reduction of the tariff, the Brazilian market might be even slower in the coming weeks. The government decision stemmed from the high dollar exchange rate compared with the Brazilian currency, which acts as a natural protection for the industry in Brazil.