Mexico City-based chemicals and building materials multinational Orbia expects anti-dumping duties on US chemical and plastic imports into Latin America to boost its regional production and sales, particularly for caustic soda and PVC. The company, one of Latin America's largest producers of these commodities, has faced margin pressure from cheap US imports and falling global prices, but recent trade measures in Mexico and Brazil are shifting the competitive landscape in its favor.
Anti-dumping duties on US caustic soda and PVC
In July 2025, Mexico's economy ministry imposed an anti-dumping duty of US$195 per metric ton on imports of caustic soda from the US, following an official request by Orbia. The company had argued that rising US imports were eroding its market share. Separately, in April 2025, Mexico launched an anti-dumping investigation into PVC imports from the US, also prompted by an Orbia request filed in December 2024.
Brazil's 43.7% PVC tariff adds to existing import tax
In June 2025, Brazil imposed an anti-dumping tariff of 43.7% on PVC imports from the US, on top of the existing 20% import tax on plastic resins, according to Orbia CEO Sameer Bharadwaj. This steep combined cost increase for US-origin PVC is expected to redirect demand toward regional producers. Orbia supplies the Brazilian market from its PVC plant in Cartagena, Colombia, which benefits from duty-free access under trade agreements.
Orbia's Q2 earnings and market outlook
Orbia's EBITDA fell 10% in the second quarter of 2025, partly due to lower global PVC prices. However, the company expects the new anti-dumping measures to support pricing and volumes in the second half of the year. "Mexico has finally applied anti-dumping duties. That is going to benefit us in the second half of the year," Bharadwaj told a Q2 earnings call on July 24, 2025.
What buyers should watch
Importers and distributors of caustic soda and PVC in Latin America should monitor the evolving duty landscape. The combined effect of Mexico's US$195/t duty on caustic soda and Brazil's 43.7% tariff on PVC, plus the 20% base import tax, will significantly raise landed costs for US-origin material. Buyers may need to diversify sourcing to regional producers like Orbia or explore alternative origins to maintain cost competitiveness.
Source: Read the original report | Published: July 30, 2025