Brazil’s chemical industry posts record US$44 billion trade deficit as imports flood the market

Driven by costly energy and weak competitiveness, Brazil’s chemical sector now imports half of what it consumes, Abiquim’s ENAIQ 2025 report shows.

Nov 7, 2025 10:38 AM

By Brazil Stock Guide – Brazil’s chemical industry, represented by Abiquim, will closed 2025 with its worst trade deficit in history, according to the ENAIQ 2025 report, the sector’s annual survey. The numbers are stark: imports reached US$57 billion, up 17% from the previous year, while exports stagnated at US$12.9 billion, pushing the trade gap to US$44.1 billion.

The deficit reflects a deep structural imbalance. Nearly half of Brazil’s chemical demand is now supplied by imports, compared with more than 70% produced domestically three decades ago. Local plants are running at just 64% of capacity, a level Abiquim attributes to high energy prices, tax complexity, and a volatile exchange rate that undermine competitiveness.

The industrial chemicals segment remains at the heart of the problem, accounting for roughly 80% of the total deficit. The largest import categories are other organics (US$14.5 billion), thermoplastic resins (US$8 billion), basic petrochemicals (US$7.1 billion), fertilizer intermediates (US$4.1 billion), and chlor-alkali products (US$2.8 billion). Most of these goods come from the U.S., China, and the Middle East, regions with lower energy costs and scale advantages.

The pharmaceutical industry adds another US$6.4 billion deficit, fueled by imports of medicines and active pharmaceutical ingredients (APIs) mainly from China and India. In agribusiness, dependence is equally high: 85% of fertilizers used in Brazil are imported, contributing US$3–4 billion to the overall gap. Together, petrochemicals, pharmaceuticals, and agricultural inputs explain 95% of the country’s chemical trade deficit, Abiquim says.

Despite the imbalance, the report highlights the sector’s environmental strengths. Brazil’s chemical industry uses 82.9% renewable energy and emits 50% less CO₂ per ton of product than the global average. Yet without coordinated industrial and energy policies, Abiquim warns, the country risks becoming a permanent importer of strategic chemical inputs — from fertilizers and plastics to essential medicines.