By: Himanshu Sati --
13 August, 2015
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:
COVID-19: Assess impact on your suppliers and ensure business continuity with Beroe’s WIRE
(World Instant Risk Exposure)