Braskem’s ethylene production slightly decreased in the 4th quarter; exports went up

Braskem’s ethylene production totaled 800,004 tonnes in the fourth quarter of 2021, marking a slight decrease of 0.5% from the same period in 2020.

On the other hand, the company saw a 6% increase compared to the third quarter. In 2021, production was stable at 3.02 million tonnes.

The average utilization rate of petrochemical plants in Brazil also showed a negative change compared to a year earlier, from 1 percentage point (p.p.) to 85%. At the same time, it rose 5 p.p. compared to July to September.

Braskem attributes the increase in the quarterly comparison to the greater availability of raw materials at the petrochemical plant in Rio de Janeiro and the greater demand for polyethylene (PE) in the domestic market.

The Brazilian market sales of petrochemical resin dropped 13% from October to December 2020, to 868,690 tonnes, reflecting lower domestic demand. As a result, chemicals sales fell 1% to 801,792 tonnes.

Compared to the third quarter, there was a 1% drop in resin sales and a 5% increase in chemicals. There was a 5% drop in resin sales between January and December, while chemical sales rose 13%.

Exports

Exports of resins and chemicals increased by 27 % and 40 %, respectively, year on year. Compared to the figures from July to September, the increases were 13% and 4%, respectively. Conversely, the indicator declined in both categories this year, by 23% and 5%, respectively.

United States

In turn, polypropylene (PP) output declined by 14% in the United States but climbed by 43% in Europe compared to a year ago, while declining by 22% and 9%, respectively, compared to the third quarter. In 2021, the two regions advanced by 12 % and 16%, respectively, compared to 2020.

The average utilization rate of factories in the United States dropped 12 pp compared to the fourth quarter of 2020, due to a scheduled maintenance stoppage in one of the units in the region, in the period, and the deceleration of production accompanying the reduction in demand in the region.

Still, in the United States, sales were down 10% compared to a year earlier and 15% from July to September. However, from January to December, sales grew 7%.

Source: Valor Econômico 

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https://valor.globo.com/empresas/noticia/2022/02/21/producao-de-eteno-da-braskem-tem-ligeira-queda-no-4o-trimestre-exportacoes-sobem.ghtml

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