Brazil cuts import tariffs for capro, PTA to ensure supply

04 December 2012 21:06  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--Brazil's Chamber of Foreign Trade (Camex) said on Tuesday that it has temporarily lowered the nation's import tariffs on caprolactam (capro) and purified terephthalic acid (PTA) to safeguard the products’ supply.

The reductions were not related to production issues resulting from a power outage in October that affected Brazil's north, northeast and centre-south regions, Camex said.

The tariff on capro, a raw material used for the production of nylon, was cut from 12% to 2% for a period of 180 days and limited to a maximum quota of 26,000 tonnes, Camex said.

The tariff on PTA, the main raw material for the production of polyethylene terephthalate (PET), was cut from 12% to 0% and for a period of 90 days, Camex said. The tariff reduction is limited to a maximum quota of 42,000 tonnes.

Italian chemical company Mossi & Ghisolfi, the only producer of PET in Brazil, recently announced that negotiations were underway to purchase PTA from Petrobras.

Brazil’s state-run oil company plans to produce PTA and PET resin at the Suape Petroquimica complex in northeast Brazil from early 2013.

The complex will have a PTA capacity of 700,000 tonnes/year and a 450,000 tonne/year capacity of PET resin, Petrobras said.

By: Simon West

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