US tariff on Brazilian dissolving pulp raises MMCF feedstock costs

Effective **:** a.m. Eastern Time (ET) on July **, ****, Brazilian high-purity dissolving pulp the primary feedstock for man-made cellulosic fibres (MMCF), including viscose, rayon, lyocell and modal became subject to a ** per cent US import tariff. Goods loaded and in transit before July ** qualify for a grace period if entered before July **. Thereafter, the tariff applies to all imports.

Why USTR removed the exemption

USTR concluded that imposing tariffs on dissolving pulp would not create domestic supply shortages. Hearing testimony claimed that Brazilian producers benefit from illegal deforestation, while downstream US users have domestic alternatives. In effect, Washington determined that imported dissolving pulp could be tariffed without materially disrupting domestic supply.

Brazil is a critical supplier to the global MMCF industry. Bracell, owned by Singapore**;s Royal Golden Eagle (RGE), has been the world**;s largest dissolving-pulp producer since its Lençóis Paulista “Project Star” mill reached full production in September ****. Industry estimates attribute roughly ** per cent of global dissolving pulp sales by volume to Bracell, while the facility has an annual production capacity of up to *.* million tonnes.