Braskem Mexico's PE rates surge in 3Q

Market: Petrochemicals
30/10/26

Brazilian petrochemical producer Braskem sharply increased polyethylene (PE) production rates and sales in Mexico in the third quarter, as higher ethane imports and increased feedstock supply from state-owned Pemex boosted product availability.

Braskem's PE operating rate at Mexican joint venture Braskem Idesa rose to 62pc from 47pc a year earlier and 43pc in the second quarter. PE sales climbed to 159,000 metric tonnes (t), up by 9pc year-on-year and by 28pc quarter-on-quarter. Ethane imports through the TQPM maritime ethane terminal nearly doubled to 27,300 b/d from 14,700 b/d in the previous quarter, while Pemex supply increased to 13,200 b/d from 11,800 b/d. Mexico's PE spread was 27pc higher year-on-year at $921/t but fell by 35pc from the second quarter.

In Brazil, Braskem's domestic resin sales rose to 854,000t, up by 9pc from a year earlier and by 12pc from the second quarter. Resin exports increased by 5pc year-on-year and by 37pc quarter-on-quarter to 240,000t. Braskem attributed the increases to its strategy of expanding market share in priority domestic segments and greater product availability for exports.

Brazilian crackers operated at an average 69pc of ethylene capacity, up by 4 percentage points from a year earlier but down by 1 percentage point from the previous quarter. Lower production in Bahia and Sao Paulo states was partly offset by higher output in Rio Grande do Sul state. Braskem's resin spread increased by 5pc from a year earlier to $372/t but fell by 43pc from the second quarter.

Braskem's US and European polypropylene (PP) plants operated at 74pc of capacity, down by 5 percentage points from a year earlier and by 2 percentage points from the prior quarter. Combined PP sales fell by 1pc from a year earlier and by 2pc from the previous quarter to 489,000t. The average US-Europe PP spread was 11pc higher at $402/t on the year but fell by 14pc on the quarter. The European PP spread plunged to $18/t from $155/t a year earlier and from $145/t in the previous quarter.

Braskem is scheduled to release its third-quarter financial results on 12 November.

By Fred Fernandes

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