Petrochemical giant Braskem will appeal the Brazilian government's Thursday decision setting definitive antidumping duties of $199/t on imports of US polyethylene (PE) and $238/t on Canadian grades, chief executive Roberto Ramos said.
Ramos said the government, in its 26 March decision, "did not properly assess" the technical evidence presented in the investigation, which runs through 14 May, and reiterated that the local foreign trade chamber of commerce, Camex, had previously recommended duties of $734/t.
"The study is very robust and clearly demonstrated predatory pricing by US producers", he said.
Ramos also highlighted the sharp increase in feedstock costs stemming from the conflict in the Middle East, especially petrochemical naphtha. Braskem sources most of its naphtha from Brazilian state-controlled Petrobras but still imports volumes from the US, Algeria and the Middle East.
"The government should have been more sensitive to our situation," Ramos added. "We are effectively in a state of war", he said, calling the ruling "regrettable".
Ramos said Braskem will conduct a deeper review of the government's decision but confirmed the company will move ahead with a formal appeal.
Results
Braskem's margins narrowed in the fourth quarter as global oversupply and seasonal softness continued to pressure spreads.
Recurring earnings before interest, taxes, depreciation and amortisation (Ebitda) fell to $109mn in the fourth quaarter from $150mn in the prior quarter, on thinner resin and chemical spreads and lower sales in Brazil and export markets.
Braskem's operations in Brazil and South America remained the largest drag. Cracker utilization dropped to 59pc, a drop of 6 percentage points from the prior quarter, because of scheduled maintenance in Bahia state and reduced feedstock supply to Sao Paulo state. Domestic resin sales fell by 6pc and chemical sales dropped by 15pc from the prior quarter. Segment recurring Ebitda slipped by 30pc to $143mn from the third quarter.
At Braskem's operations in the US and Europe, weaker polypropylene (PP) prices, pressured by higher imports in Europe and turnarounds, pushed segment Ebitda to $32mn. Utilization fell to 71pc, a fall of 8 percentage points from the previous quarter, while PP sales eased by 3pc.
Mexico was the sole operational bright spot. Utilization at its joint venture there rose to 85pc, an increase of 38 percentage points from the third quarter, as ethane supply normalized with higher imports through the TQPM ethane terminal. PE sales increased by 52pc, while recurring Ebitda remained modest at $11mn.
Braskem posted a fourth-quarter loss of $1.9bn, driven mainly by deferred tax asset write offs and other non cash impacts. Full-year 2025 recurring Ebitda totaled $557mn, down by 49pc year on year.
Braskem's year-end gross debt reached $9.4bn, with $2.1bn in cash, the company said.
