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Brazil Proposes Imposing Provisional Anti-Dumping Duties on Polyethylene Imports from US and Canada

Plastmatch Global Digest 2025-08-22 14:02:22

According to a decision published in Brazil's Official Gazette on August 21, the Brazilian Foreign Trade Secretariat recommended imposing provisional anti-dumping duties on polyethylene (PE) products imported from the United States and Canada.

The provisional anti-dumping duty amounts are as follows: USD 199.04 per ton for polyethylene products from the United States, and USD 238.49 per ton for polyethylene products from Canada.

The resolution still needs to be approved by a vote of the Brazilian Foreign Trade Board before it can be applied to imported polyethylene products from North America. The next meeting of the committee is scheduled for August 28.

The resolution states that the Foreign Trade Secretariat, after investigation, has determined that North American producers and traders engaged in dumping when exporting polyethylene to Brazil, and that this behavior has caused damage to the domestic industry in Brazil.

The statement reads: "The domestic industry requests the imposition of a provisional anti-dumping duty to offset the damage caused by the import of polyethylene resin at dumped prices."

Before the Brazilian Foreign Trade Commission makes a final decision, the implementation period of the provisional anti-dumping duty is recommended to be no longer than six months.

Brazil has recently proposed imposing anti-dumping duties on imported polyethylene products, nine months after the country announced on November 13, 2024, an investigation into the pricing of related North American products. At that time, Braskem, Brazil's sole producer of polyethylene and polypropylene, filed the investigation request.

The new proposed deadline for the final decision on anti-dumping duties is February 2, 2026, which means the investigation will be extended by 18 months.

Market participants were surprised by the decision to impose provisional anti-dumping duties, as relevant rumors during July and August did not mention any progress in the decision-making of the anti-dumping investigation.

Most sources reported that in the week ending August 20, U.S. polyethylene demand remained stable, as prices continued to decline, making it competitive compared to other regions, especially domestic products in Brazil.

S&P Global Commodity Insights' Platts on August 20 assessed that the price of high-density blow molding polyethylene fell by USD 15/ton that week to USD 890/ton CFR Brazil; the price of linear low-density polyethylene fell by USD 20/ton that week to USD 965/ton CFR Brazil.

Despite reports that current demand has increased compared to the first half of the year, some market participants still hold concerns about purchasing U.S. polyethylene products.

An industry participant said on August 20, "There is no doubt that it is a good time to purchase raw materials at the current prices, but there is always concern that anti-dumping duties will be officially imposed."

Another source believes that the decision to impose a provisional anti-dumping duty has political factors and is a response by the Brazilian government to the United States imposing a 50% import tariff on Brazilian products.

From January to July this year, the United States accounted for 70% of Brazil's total polyethylene imports, while Canada was the third largest supplier, accounting for 5%.

In July, Brazil's polyethylene imports rebounded, which was unusual compared to the previous months—imports had been declining, with a year-on-year decrease of 11%.

Another source added, "This is purely a political decision, and Brazil wants to include it in the agenda for negotiations with the United States."

Currently, most sources remain cautious about this decision.

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Brazil Proposes Imposing Provisional Anti-Dumping Duties on Polyethylene Imports from US and Canada

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