South America captures Brazil polymers imports share

Global disruptions in logistics chains have resulted in other South American countries gaining market share in Brazil's polymer markets, displacing overseas alternatives.

Brazilian polyethylene (PE) imports fell to 52,000t in April, down by 62pc from April 2021, with imports from North America, the largest exporting region to the country, down by 24pc over the same period, according to official data from Brazil's Comex Stat.

PE sales from other regions also declined in April.

Logistics troubles which have plagued the US since the beginning of the year are the root cause for the declining North American sales to Brazil. A lack of containers and shipping lines delivering resin to Brazil has been a common complaint since January, and importers do not expect the situation will improve until 2023.

While Brazil's imports of US polymers declined in April on the year, Brazil's imports from other South American countries increased, including from Argentina, Colombia, and Chile. Official data shows that the share of Brazilian PE imports from South America rose to 31pc last month, from 9pc in April 2021.

Data for the first four months of the year showed Brazilian PE imports from South America rose to 24pc of total imports, up from 11pc in the same period of the previous year. Brazil acquired 313,300t of imported PE in the January to April period,down by 33pc from a year earlier, with all overseas regions losing market share to other South American countries.

Brazilian PE exports increased 24pc to 46,900t in April versus the same month in 2021, and 27pc to 204,400t in January-April from a year earlier, with South America and Europe the most important buyers.

In the case of polypropylene (PP), Asia-Pacific is the region that has lost more market share in Brazil in April and in the first four months of the year.

April PP imports to Brazil fell 48pc year-on-year to 25,900t, with Asia-Pacific sales declining to 9pc of the total, compared to 29pc a year ago. Lockdown restrictions in major Chinese ports are the main cause of decreased PP shipments to Brazil.

On the other hand, the share of South American PP shipments to Brazil hit 46pc last month, growing from 24pc of the total in April 2021.

In January-April, Brazilian imports of PP totaled 107,600t, down by 38pc on the year, with all producing regions losing market share with the exception of South America, which saw its slice of total Brazilian PP imports growing to 44pc in the four-month period. In January-April 2021, South America's market share was 21pc.

Brazilian PP exports increased 103pc to 30,800t in April, and by 51pc to 105,100t in January-April, both from a year earlier, with South America the main destination in both periods.

By Frederico Fernandes