# 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.*

- Published: 2025-11-07
- Section: Insights
- Tags: chemical
- URL: https://brazilstockguide.com/insights/brazil-chemical-industry-abiquim-enaiq-2025-trade-deficit/

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**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.

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Source: Brazil Stock Guide, https://brazilstockguide.com/insights/brazil-chemical-industry-abiquim-enaiq-2025-trade-deficit/