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Braskem 3Q sales down, eyes feedstock switch

Braskem 3Q sales down, eyes feedstock switch

Sao Paulo, 11 November (Argus) — Brazilian petrochemical company Braskem faced a turbulent third quarter in 2025, marked by operational challenges, strategic uncertainty and efforts to reposition its feedstock strategy. Menwhile, the company is navigating a potential restructuring and sale while managing the fallout from the closure of its chlor-alkali operations in Alagoas and ongoing low utilization rates across its production assets. Braskem completed technical studies on using liquefied petroleum gas (LPG) derivatives — specifically propane and ethane — sourced from Argentina's Vaca Muerta shale formation as a feedstock, the company said during its third quarter earnings call. Preliminary data suggest a potential cost reduction of $110/t compared to petrochemical naphtha, which is currently used in several of Braskem's facilities. The company already uses propane from Vaca Muerta at its Copesul plant in Triunfo, Rio Grande do Sul, where trials are underway to assess long-term viability. Feedstock selection will depend on pricing and logistics, with other Argentinian raw materials also under evaluation, chief executive Roberto Ramos said. The shutdown of Braskem's chlor-alkali plant in Alagoas between September and October led to layoffs and added pressure to its vinyls operations. To stabilize this segment, Braskem announced a strategic agreement with US-based Olin for the supply of ethylene dichloride (EDC). The deal supports Braskem's chlor-alkali and vinyl asset restructuring in Brazil. While supply volumes were not disclosed, the company expects the partnership to enhance competitiveness and sustainability in its PVC operations. Olin was selected for its cost-efficient EDC production, based on US shale gas ethane, and favorable logistics. Ramos cited these factors as decisive in formalizing the agreement. Average utilization rates across Braskem's petrochemical complexes fell to 65pc in the quarter, down 9 percentage points from the subsequent quarter and 8 points from a year prior. The decline was driven by scheduled maintenance at the Rio de Janeiro complex and a strategic reduction in naphtha-based production amid weak demand. Operational idle time costs the company approximately $60mn per quarter, Institutional relations director Rosana Avolio estimated. Braskem Idesa PE sales fall In Mexico, PE sales through the Braskem Idesa joint venture fell by 30pc year on year to 146,000t, mostly because of lower product availability, while spreads in the international market remained stable. Braskem Idesa's plant utilization rate fell to 47pc, down by 27 percentage points from a year earlier, because of a scheduled maintenance shutdown and reduced ethane supply from Mexico's state-owned Pemex, which fell to 11,300 b/d from 28,900 b/d in the previous year. The company's new ethane terminal, Terminal Quimica Puerto Mexico (TQPM), began supplying ethane to Braskem Idesa. TQPM, still in the commissioning phase, received approximately 11,300 b/d. The ethane supply from TQPM the Braskem Idesa plant is now operating above nominal capacity, which should support Ebitda growth in the coming quarters, Ramos said. Resin sales, prices down Braskem's Brazil resin sales fell by 9pc to 787,000t in the third quarter from a year before, with volumes also down in the US, Europe, and Mexico. International resin price references during the period were lower, impacting the profitability of its domestic sales, Braskem said in its preliminary third-quarter production and sales report. The company posted a R26mn ($4.9mn) loss for the quarter, narrowing from a R592mn loss in the third quarter of 2025 and from a R267mn loss in the second quarter this year. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.