This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 8/10/2017

 

Overview
Brazil imported US$34.2 billion in chemical products in 2016: 56 percent of these products, worth US$10.2 billion, were supplied by companies from the European Community, and US$8.9 billion came from North America. The Brazilian chemical industry is very receptive to American chemicals, based on the quality of the products and in several cases coupled with competitive prices offered.
 
The challenge in the market is related to product registration, several chemical products, including raw materials, must be registered with governmental agencies on the municipal, state, and federal levels. The Brazilian government has been working to reduce the amount of time to register products, but it can take up to one year to complete the registration process depending on the product.
 

Chemicals in Brazil

 

2014

2015

2016

2017 (Estimated)

Total Local Production

156.7

112.4

113.5

N.A.

Total Exports

 14.4

 12.8

 12.2

13 – 13.5

Total Imports

 46.1

 38.2

 34.2

35 – 36

Imports from the US

 10.2

  8.2

  7.1

8 – 9

Total Market Size

202.8

150.6

147.7

N.A.

Exchange Rates

2.35

3.33

3.49

 

In US$ billions (Total market size = (total local production + imports) - exports)
 
Net sales for the Brazilian chemical industry in 2016, taking into account all segments, were about US$113.5 billion, a 1.5 percent increase over 2015. The chemical industry accounts for 2.5 percent of Brazil’s GDP.
 
Considering the Brazilian Institute of Geography and Statistics (IBGE)’s figures of 2014, the chemical sector is the 3rd largest industry in Brazil, representing 10.4 percent of the industrial GDP, behind Processed Food & Beverage (21.2 percent); and Petrochemical (16.6 percent).
 
According to the Brazilian Chemical Industry Association (ABIQUIM), Brazil imported US$34.2 billion of chemical products in 2016, a reduction of 10.7 percent which accounts for 37.5 million tons; however, in million tons the imports grew 11.6 percent Nevertheless, Brazil faces a trade deficit of US$22 billion in the chemical sector. Fertilizers are the principal product imported, in the amount of US$5.2 billion and 22.2 million tons.
 
Brazil exported US$12.2 billion in 2016, which decreased 5.3 percent compared to 2015. Countries from Mercosur and Latin America were the main destinations for Brazilian chemical exports in 2016: Argentina, Paraguay and Uruguay imported US$747 million, while other Latin American (except Mercosur and Mexico) countries bought US$854 million.
 
The top 10 products imported in 2016, were:
 

The top 10 chemical products imported in 2016 - Brazil

 

 

PRODUCT

US$ MILLION

1

Potassium Chloride

1989

2

Diohydrogen-Orphosphate (Monoamonic or Monoamonical Phosphate), even if mixed with Diamonian Hydrogen-Orphosphate (Diamoniacal or Diamoniacal Phosphate)

978

3

Blood Fractions, Modified Immunological Products (Drugs)

953

4

Urea (with nitrogen content >45% by weight)

902

5

Other medicines containing heterocyclic compounds in doses

826

6

Pesticides

786

7

Fungicides

624

8

Fertilizers / Fertilizers with nitrogen and phosphorus

547

9

Other Vaccines for Human Medicine, in doses

489

10

Other Heterocyclic Compounds Containing 1 Cycle Pyrazole, not condensed

445

 

 
 
BRAZIL IS THE 8TH LARGEST CHEMICAL INDUSTRY IN THE WORLD
TOTAL AMOUNT WOLRDWIDE: US$5.226 BILLION
 

The Chemical Industry

Chemical Industry

#

COUNTRY

NET SALES US$ BILLION

1

CHINA

1,921

2

USA

  797

3

JAPAN

  254

4

GERMANY

  238

5

SOUTH KOREA

  169

6

INDIA

  134

7

FRANCE

  124

8

BRAZIL

  112

9

UK

  110

10

SWITZERLAND

   99

11

ITALY

   86

12

TAIWAN

   83

13

IRELAND

   83

 

 Leading Sub-Sectors

  • Pharmaceuticals

  • Inorganics

  • Organics

  • Resins and Elastomers

  • Pesticides

  • Other Chemicals

  • Fibres, Wires, Cables and Continuum Filaments

  • Soaps, Detergents, Cleaning Products and Personal Care Items

  • Paints, Varnishes, Lacquers and Related Products

 

Chemicals Sub-sectors in Brazil

Chemicals Sub-sectors in Brazil

#

Sub-sector

Tons

1

Inorganics

29,554,150

2

Organics

3,783,729

3

Resins and Elastomers

2,391,691

4

Other Chemicals

570,720

5

Pesticides

519,101

6

Fibres, Wires, Cables and Continuum Filaments

442,038

7

Pharmaceuticals

134,238

8

Soaps, Detergents, Cleaning Products and Personal Care Items

 86,823

9

Paints, Varnishes, Lacquers and Related Products

70,585

 

 
U.S. suppliers have a great opportunity to grow their exports in the following top five chemical sub-sectors: pharmaceuticals, inorganics, organics, resins, and pesticides.
IMPORTS BY REGION

Chemicals Imports by Region

Chemical imports by Region

#

Sub-sector

TOTAL

Mercosur

North America

EU

1

Pharmaceuticals

8,778,763

151,231

2,005,968

4,309,103

2

Inorganics

7,992,336

107,095

2,264,932

1,169,959

3

Organics

6,403,428

140,938

1,702,052

1,659,033

4

Resins and Elastomers

3,822,752

526,549

1,220,719

968,127

5

Pesticides

3,436,285

195,108

860,907

863,121

6

Other Chemicals

2,031,018

114,552

664,092

823,901

7

Fibres, Wires, Cables and Continuum Filaments

788,789

25,080

43,839

76,370

8

Soaps, Detergents, Cleaning Products and Personal Care Items

537,728

148,231

146,069

181,584

9

Paints, Varnishes, Lacquers and Related Products

375,391

12,968

89,332

155,378

 
IMPORTS BY TRADE BLOC

Chemical Imports by Trade Bloc

Chemical Imports by Trade Bloc

#

Sub-sector

TOTAL

ALADI (except Mercosur and Mexico)

Asia (except Middle East)

Others

1

Pharmaceuticals

8,778,763

58,373

1,547,416

706,671

2

Inorganics

7,992,336

257,448

773,407

3,419,494

3

Organics

6,403,428

149,250

1,943,368

808,788

4

Resins and Elastomers

3,822,752

219,133

687,592

200,633

5

Pesticides

3,436,285

68,283

1,161,088

287,778

6

Other Chemicals

2,031,018

19,990

353,496

54,988

7

Fibres, Wires, Cables and Continuum Filaments

788,789

13,477

606,778

23,246

8

Soaps, Detergents, Cleaning Products and Personal Care Items

537,728

13,665

36,138

12,043

9

Paints, Varnishes, Lacquers and Related Products

375,391

3,607

71,048

43,058

 
Regarding chemical products, Brazil imported a total of US$8.9 billion from North American suppliers in 2016, 79.1 percent (US$7.1 billion) of which came from U.S. companies:

Chemical Imports from

Chemical imports from

NORTH AMERICA

2015

Canada

13.7%

USA

79.1%

Mexico

 7.2%

 Opportunities

As trade deficit statistics indicate, Brazil is by no means self-sufficient in the chemical sector. Imports have been increasing significantly. Brazil imported a total of US$3.6 billion in chemicals in 1991. Since then, chemical imports have grown more than 852 percent.
 

Chemical Imports - Brazil

Chemical Imports – Brazil
 

Brazilian chemical imports

1991

1998

2001

2008

2009

2016

US$ Billion

3.6

10.1

10.8

35.1

26.1

34.2

 
During January and February of 2017, chemicals represented 22.8 percent of Brazilian imports, a total amount of US$5.3 billion, generating a deficit of US$3.2 billion. Fertilizers are the principal product imported, with a total of US$1 billion. Brazil has already imported 7.2 million tons of chemical products.
 
CHALLENGES
While an excellent market for U.S. chemical products, Brazil’s chemical sector has several challenges to importers, including:
 
Product registration: Several chemical products, including raw materials, must be registered with governmental agencies, such as the Brazilian Federal Police and the Brazilian Army; and may also require registration with municipal, state and federal agencies.
 
Import taxes and duties: Brazil’s costly and complex cascading tax system and import duties can be challenging for some U.S. chemical companies. However, Brazilian chemical importers and customers trust in the quality of U.S. chemicals and, in some cases, may opt to pay more for U.S. products. Suppliers in Germany, France and UK are the strongest competitors for United States exporters.
 
Competition from Mercosur: Since Brazil is part of Mercosur, its fellow member countries, Argentina, Paraguay and Uruguay can export to Brazil with lower or no taxes.
 
Mercosur International Agreements: Chemical suppliers within Mercosur member countries benefit from several unilateral and regional international agreements. Brazilian suppliers, meanwhile, reap similar benefits through the country’s unilateral trade agreements with five Latin American countries.
 

Web Resources

  • Brazilian Chemical Industry Association (ABIQUIM)

  • Brazilian Institute of Geography and Statistics (IBGE) 
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    For more information about export opportunities in this sector, please contact US Commercial Service Industry Specialist: Renato.Sabaine@trade.gov

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.



Brazil Chemicals Trade Development and Promotion