Polypropylene Procurement in Brazil: Opportunities Ahead


By: Himanshu Sati --

13 August, 2015

Polypropylene Procurement in Brazil: Opportunities Ahead

Brazilian government imposes anti-dumping duty on polypropylene (PP) imports coming into the nation from South Africa, India, and South Korea.

PP import volumes coming into Brazil have been growing at a CAGR of ~16% since 2006, with the share of imports in the nation’s domestic consumption of PP steadily rising from close to 5% in 2006 to an estimated 15% in 2014. Price competitive imports from the aforementioned nations had seen their popularity grow among the Brazilian buyers during this period.

The increasing imports have forced the Government to impose an anti-dumping duty ranging between 2.4% to 16% on PP coming from above regions. This recent development is of much importance to the region’s burgeoning CPG, F&B, and pharma industries, with regards to their packaging spend on PP The future of PP procurement in Brazil will depend on how the trade dynamics will shift due to the imposed anti-dumping duties, which are bound to result in increased procurement spend in the PP_ space. Which nodes of the value chain would be affected by this decision? What will become to the PP volumes coming into Brazil from these nations? Will they pull out of the market? If yes, who might fill the void? How will the domestic market respond, and what repercussions are in store for the price outlook of the market?

This whitepaper aims to seek answers to these questions, and help category managers grasp the nuances of PP procurement in Brazil by analysing the following parameters:

  • Trade dynamics of the Brazilian PP market
  • Shift in PP procurement practices in Brazil over the past 8 years
  • Import regulations: the need to protect the domestic producers
  • Impact of anti-dumping duties on the PP producers of India, South Africa, and South Korea
  • Impact of anti-dumping duties on the future of Brazilian PP import mix
  • Analysis on which value chain stakeholder (resin producer, resin converter, or packaging consumer) would absorb the price increase
  • Price outlook of domestic PP prices in Brazil – from the perspective of buyers switching from imported PP to domestically produced PP
  • Analysis of price-competitive alternatives available for Procurement managers operating in the Brazilian market


COVID-19: Assess impact on your suppliers and ensure business continuity with Beroe’s WIRE
(World Instant Risk Exposure)