Brazilian plastics association Abiplast (São Paulo; www.abiplast.org.br) has expressed concerns about the introduction of a new measure governing imports of suspension PVC (S-PVC) into Brazil. The Brazilian Foreign Trade Department, part of the Ministry of Development, has introduced a non-automatic licence for imports of S-PVC, starting from 16 May 2011. As a result, authorisation for imports could take up to 60 days and must be completed before the merchandise embarks for Brazil, Abiplast said in a statement.

The new measure will make it more difficult to import PVC, an essential raw material for plastics processors, the association said. The plastics processing sector relies partially on PVC imports because Brazilian PVC demand significantly exceeds local production, it explained. At the same time, tariffs on PVC imported into Brazil from the USA, China, South Korea and Mexico are the highest of any major country, increasing costs for plastics processors, Abiplast added.

Brazilian PVC demand has exceeded local supply for several years as a result of a lack of investment in local capacity, the association said. However, new projects are being planned. Brazilian resins producer Braskem (São Paulo; www.braskem.com.br) is building a 200,000 t/y PVC project, which it expects to start up in the first half of 2012 – see Plasteurope.com of 11.04.2011. In addition, Solvay (Brussels / Belgium; www.solvay.com) is studying the construction of a PVC facility in Brazil based on sugarcane ethanol – see Plasteurope.com of 10.01.2011.