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Braskem's Sales Plunge In Q3 2025: Unraveling Challenges In Latin America's Chemical Sector
(MENAFN- The Rio Times) In the heart of Brazil's industrial landscape, Braskem S.A.-the nation's petrochemical powerhouse-has unveiled a troubling snapshot of its third-quarter 2025 performance, revealing deeper fissures in the economy.
Domestic resin sales plummeted 9% year-over-year to 787,000 tons from July to September, driven by waning demand for key plastics like polypropylene, polyethylene, and PVC.
Chemical sales dipped 2% to 700,000 tons, hit by reduced needs for benzene, ethylene, and substitutes flooding the market.
Plant efficiency fell to 65%, hampered by a month-long maintenance halt in Rio de Janeiro and deliberate output cuts to match sluggish demand. Yet, this is more than quarterly numbers; it's a narrative of vulnerability.
Exports of resins climbed 9% to 229,000 tons, a silver lining amid international woes: U.S. and European sales edged down 1% to 495,000 tons with shrinking profit margins, while Mexican operations via Braskem Idesa cratered 30% to 146,000 tons due to planned downtime.
Braskem's Debt Crisis Exposes Brazil's Industrial Fragility
A new ethane supply from Puerto Química México hints at stabilization, but it underscores reliance on volatile global chains. Behind the figures lurks Braskem 's precarious foundation.
Controlled by Novonor (once Odebrecht, scarred by corruption scandals) and with Petrobras owning 47%, the firm grapples with crushing debt-its leverage ratio hit 15.3 times EBITDA by mid-2025.
Credit ratings tumbled: Moody's to Caa3, S&P to BB-, fueling bond yields over 36% and a 40% stock plunge this year.
Regulatory probes by environmental agency Ibama and antitrust nods for potential sales signal desperate restructuring bids, including advisor-led debt talks and scrapped credit lines to hoard cash.
For outsiders, this saga illuminates Brazil's broader stagnation: high inventories, job losses, and faltering sectors like construction and autos that depend on Braskem's outputs.
As Latin America's resin leader, employing thousands and fueling exports, its woes could ripple globally, exposing risks in emerging markets amid trade wars and commodity swings. Awareness here urges vigilance-economic fragility in one nation echoes worldwide.
Domestic resin sales plummeted 9% year-over-year to 787,000 tons from July to September, driven by waning demand for key plastics like polypropylene, polyethylene, and PVC.
Chemical sales dipped 2% to 700,000 tons, hit by reduced needs for benzene, ethylene, and substitutes flooding the market.
Plant efficiency fell to 65%, hampered by a month-long maintenance halt in Rio de Janeiro and deliberate output cuts to match sluggish demand. Yet, this is more than quarterly numbers; it's a narrative of vulnerability.
Exports of resins climbed 9% to 229,000 tons, a silver lining amid international woes: U.S. and European sales edged down 1% to 495,000 tons with shrinking profit margins, while Mexican operations via Braskem Idesa cratered 30% to 146,000 tons due to planned downtime.
Braskem's Debt Crisis Exposes Brazil's Industrial Fragility
A new ethane supply from Puerto Química México hints at stabilization, but it underscores reliance on volatile global chains. Behind the figures lurks Braskem 's precarious foundation.
Controlled by Novonor (once Odebrecht, scarred by corruption scandals) and with Petrobras owning 47%, the firm grapples with crushing debt-its leverage ratio hit 15.3 times EBITDA by mid-2025.
Credit ratings tumbled: Moody's to Caa3, S&P to BB-, fueling bond yields over 36% and a 40% stock plunge this year.
Regulatory probes by environmental agency Ibama and antitrust nods for potential sales signal desperate restructuring bids, including advisor-led debt talks and scrapped credit lines to hoard cash.
For outsiders, this saga illuminates Brazil's broader stagnation: high inventories, job losses, and faltering sectors like construction and autos that depend on Braskem's outputs.
As Latin America's resin leader, employing thousands and fueling exports, its woes could ripple globally, exposing risks in emerging markets amid trade wars and commodity swings. Awareness here urges vigilance-economic fragility in one nation echoes worldwide.
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