The 50pc tariffs imposed by US president Donald Trump on Brazilian exports to the US will have no material impact on Brazilian petrochemical major Braskem, company executives said.
Braskem produces basic chemicals and polymers, which are not subject to the tariffs imposed by the US. The company's polymer exports to the US have been occasional and in relatively small volumes. For basic chemicals, exports to the US accounted for less than 1pc of Braskem's total export revenue in the first half of 2025.
Braskem's January-June exports totaled R44bn ($8bn). Approximately R390mn shipped to the US in the period, chief financial officer Felipe Jens said during the company's second quarter earnings call on Thursday. These included benzene, butadiene, gasoil and pyrolysis gasoline, among other products.
The primary factor affecting Braskem's performance is the current global downturn in the petrochemical industry, which has lasted longer than expected and continues to impact the company's entire supply chain, according to the company.
Brazil plans
In Brazil, Braskem is moving forward with investments in its polyvinyl chloride (PVC) production units in Alagoas and Bahia states.
As outlined in the business plan approved by the board of directors in early 2025, the company is allocating approximately R80mn to two projects focused on expansion and technological upgrades.
The investments aim to increase production capacity by up to 35,000 metric tonnes (t)/yr, with 15,000 t/yr coming from direct expansion of the two plants and 20,000 t/yr through technological improvements. The initiative also includes upgrades to the company's chlor-alkali plant, which are essential to support the PVC production increase, according to Jens.
In addition to industrial expansion, Braskem is implementing an eucalyptus biomass steam generation project at its Alagoas PVC unit. The initiative is expected to significantly reduce CO2 emissions, aligning operations with the company's environmental commitments.
"These actions work together to make our operations more efficient, productive, and sustainable," Jens said. "We remain focused on improving profitability and competitiveness without compromising our environmental goals."
Braskem Idesa back to full ops
Braskem Idesa, the company's joint venture in Mexico, resumed full operations of its ethane cracker last weekend, marking a new phase of productivity at the industrial complex in Coatzacoalcos, in Veracruz state.
The restart followed a technical shutdown that lasted longer than anticipated but was considered strategic to ensure full processing capacity for liquid ethane, an essential feedstock for polyethylene (PE) production.
Chief executive Roberto Ramos confirmed that the cracker returned to full load on 1 August, enabling the replenishment of the complex's three PE plants: one low density PE and two high density PE units. The low density PE plant has reached full capacity, while one of the high density PE plants experienced a technical issue that delayed production by two days but is now also ramping up to full output.
A key milestone in this phase is the start of operations at the liquid ethane receiving terminal, inaugurated in May. With the Quimica Puerto Mexico import terminal (TQPM) now active, Braskem Idesa has, for the first time in 15 years since the project began, full ethane supply capacity, which is expected to enhance stability and competitiveness in resin production.
"This asset group including the cracker and the three polyethylene plants represents our most advanced industrial operation," Ramos said. "These are modern, automated and well-designed facilities."
"With the terminal now operational, we are positioned to demonstrate the full potential of producing high quality resins at competitive cost," he added.
Potential US asset sale
Ramos confirmed that Braskem is negotiating the sale of three polypropylene (PP) plants in the US to fellow PVC producer Unipar Carbocloro.
The deal could reach $1bn and includes facilities in Texas, Pennsylvania and West Virginia. The move is reportedly driven by financial pressure, with Braskem aiming to reduce cash burn and leverage.
Ramos said that the plants have historically generated strong cash flow and that any sale would need to reflect their long-term value. Jens confirmed that Braskem is evaluating divestment options as part of its transformation plan, focusing on liquidity and economic value. While the US assets are strategically important, the company remains open to alternatives that support its broader goals.
2Q results
Braskem's domestic resin sales rose by 1pc in the second quarter from a year before and by 3pc from the previous quarter, reaching 829,000t.
The increase was driven by early buying, which in turn was prompted by tariff uncertainty. Domestic chemical sales grew by 1pc year-on-year and remained flat from the first quarter, supported by stronger benzene and propylene demand.
PP production in the US and Europe held steady at 74pc, down by 4pc from the second quarter in 2024. Sales volumes in those regions rose by 2pc quarter-on-quarter and by 1pc year-on-year, reflecting improved US demand.
The company posted a $45mn loss for the quarter, narrowing from a $708mn loss in the second quarter of 2024 and down from a $113mn profit in the first quarter this year.
