What were the key quarterly growth figures for Brazil's chemical industry in Q1 2026, and how did domestic market share change?

Brazil’s chemical industry output rose by 22.8% quarter on quarter in Q1 2026 (January–March), with domestic sales increasing almost identically at 22.7%; simultaneously, the domestic industry’s share of internal supply jumped from 42% in December 2025 to 56% in March 2026, driven by a 19.1% quarterly drop in chemical imports.

What factors does Abiquim credit for the Q1 2026 recovery, and what structural challenges remain?

Abiquim attributes the Q1 2026 rebound partly to federal government trade defense measures—including anti-dumping duties and higher import tariffs—implemented since 2025, which began yielding concrete results without inflationary impact; however, CEO Andre Passos cautions that the sector remains far from structural balance due to unresolved high costs of raw materials and energy, noting that Q1 2026 production and sales were still down 4.1% year on year, and that the 12-month trend to March 2026 showed a 7% production decline and 8.2% domestic sales shrinkage.

Brazil’s chemicals Q1 output rises nearly 23% as local producers’ market share revives

May 25, 2026

Brazil's chemical industry recorded a 22.8% production rebound in Q1 driven by reduced imports and trade defense measures. However, Abiquim cautions that high energy and raw material costs continue to threaten sustainable long-term growth.

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