Polyethylene (PE)

Understanding the world’s most widely used plastic

Discover the factors influencing polyethylene (PE) markets

From the packaging on our food to the paints in our homes, polyethylene (PE) surrounds us as by far the largest commodity plastic by overall volume. It is essential to our daily lives. With countless applications in everyday materials, it is crucial for anyone with an active interest in the market to understand what is driving PE markets. Adapting efficiently to the significant changes in how it is being produced and consumed around the world is key.

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Polyethylene (PE) news

Brazil’s chemicals importers mobilize against tariffs hike proposed by producers

SAO PAULO (ICIS)–Brazil’s importers of chemicals are lobbying the cabinet not to implement the hikes to import tariffs proposed by the country’s producers, represented by trade group Abiquim. Brazil’s Chamber of Foreign Commerce (Camex), a body under the government’s umbrella, concluded on 30 April a public consultation about import tariffs on chemicals. In it, Abiquim presented more than 60 proposals to hike import tariffs, while individual companies presented dozens more. In total, the proposals contemplate hikes in import tariffs in more than 100 products, most of them to be raised from 12.6% to 20%. Some proposals, however, aim to raise some import tariffs from 9% to 35%. A decision by Camex is expected in coming weeks. IMPORTERS MOBILIZEA key actor lobbying against the tariff hikes is Brazil’s plastics transformers trade group Abiplast, who benefit from imports into the country. Abiquim often describes those imports as coming into Brazil at “depredatory prices” which are putting some national production chains at risk due to unfair competition. China’s overcapacities continue casting a shadow in the global chemical industry, and Latin America’s historical trade deficit in the sector makes the region the perfect ground for Chinese producers to send their product, at times below costs of production. On the other hand, Abiplast and consumer groups have said a hike in import tariffs would only increase prices for consumers and industrial players alike and would only benefit Brazil’s chemicals producers. “There should be no increase in import tariffs as this is not a viable solution at this moment, nor at any time in the future. An increase would result in direct increases in prices in the Brazilian market,” said to ICIS a spokesperson for the trade group. Earlier in May, sources in Brazil’s chemicals sector said to ICIS it would be unwise to hike import tariffs right now, as the country reels from severe flooding in Rio Grande do Sul, which has a strong plastics sector, and when more imports may be needed. The floods have brought the state’s industrial fabric to a standstill, although the petrochemicals hub of Triunfo, near Porto Alegre, restarted in mid-May albeit at a slow pace as infrastructure in the state is still heavily disrupted. Abiquim, however, remains unrelentless in its request for fast action, arguing that the restart at Triunfo, with Brazil’s polymers major Braskem leading the way, will be enough to guarantee supply, without the need for more imports. Braskem has a commanding voice in Abiquim. “We don’t agree [with any pause in the hike, if finally approved, because of the floods’ effect]. Braskem resumed operations last week and, furthermore, the high level of predatory imports [in past months] mean that resin producing companies had sufficient stocks to supply the market,” said to ICIS a spokesperson at the trade group. Abiquim is hopeful it will gain the day. His lobbying to the government has gone as high as President Luiz Inacio Lula da Silva, with whom the trade group and a few chemicals producers met last week in Brasilia to make their case for the import tariffs hike. Lula’s center-left cabinet has been since the start more friendly towards chemicals producers than his predecessor Jair Bolsonaro, who favored a more free-market line. In 2023, the cabinet hiked import tariffs for several polymers twice, and reintroduced a tax break for chemicals called REIQ. Lula’s Workers’ Party (PT) main constituency is industrial workers, to whom the President promised during the electoral campaign to create more and better paid industrial jobs. Propping up domestic chemicals production would fall within that line of action. However, after Lula’s meeting with Abiquim, the backlash followed. According to a report by Brazilian daily Valor, Abiplast and 15 other trade groups have requested their own meeting with the President, hoping to stop the proposed increases in import tariffs. Among others, the groups opposing the hike include those representing sectors such as personal care, cleaning products, rubber articles, non-woven fabrics, paints, mattresses, toys, electronics, pharmaceutical products, food, polyolefin fibers, fabrics and clothing, footwear and civil construction. The groups said they were aiming to show to the President the “importance of tariff balance in maintaining industrial activities” in Brazil. BIG (AND CLOSED) CHEMICALS SECTORBrazil’s chemicals demand has always surpassed domestic supply, and around half of the country’s needs are covered by imports. That has been the case in the past few years. What has made the past year extraordinary is China dumping its product in Latin America, depressing prices – and margins for local producers. The fact that a 215-million market such as Brazil has not developed a bigger chemicals industry is surprising. Moreover, the country produces mostly commodity chemicals, which are to suffer from global downturns more than the higher-margin specialized grades. A source at Brazil’s chemicals industry, who deals with Braskem on a regular basis, was not impressed with Abiquim or Braskem’s strong stance in favor of higher tariffs. The source said it preferred to remain anonymous because “creating animosity by going against” the company’s position could put its business relationship at risk. “This [request for higher tariffs] is the cry of business mediocrity, which sees import restrictions as the solution to its productivity and technology problems. A country must not be built on protectionism but on investment in technology, productive capacity, creativity and scale,” said the source. “Brazil's political class has never prioritized competition as a source of development. Businessmen want to be alone in their businesses and the Federal Government wants to keep only Petrobras [in the crude oil sector] as a form of political financing.” Petrobras is the state-owned energy major, which holds a commanding position in the market despite other foreign players having some licenses to explore for and produce crude oil. The source added that when import tariffs are hiked generally, for all foreign potential exporters to Brazil, that is very different to potential anti-dumping duties (ADDs) imposed against a certain country – in this case, potentially China. “If the request was about ADDs on China’s product, this would be reasonable. But Abiquim and Braskem's request for hikes in import tariffs will affect all imports and this is not correct … We need more competition, not less. With more competition, some companies would have to close their doors indeed," it said. “Other companies, however, those which are more efficient, intelligent and audacious, would grow. Competition is always good and bringing foreign companies to compete in the local market would be interesting. Whenever and invariably private companies need the government to survive, there is a decrease in productivity and investments in new technologies.” However, the government’s ears are so open to chemicals producers’ demands that, on top of two import tariffs hikes in 2023 and the reintroduction of REIQ, earlier this year the cabinet announced the imposition of ADDs on US’ polypropylene (PP). The measure was taking even though PP imports into Brazil only represented 5% of the total in 2023 – 26,000 tonnes out of nearly 510,000 tonnes. Braskem is Brazil’s sole producer of PP as well as polyethylene (PE), the two mostly widely used polymers. A second source in the Brazilian chemicals distribution sector, said that the import tariff could benefits all parts of the chain – as well as producers, distributors and transformers, for instance – but only if all players rise prices in line with the increase in the import tariffs. “If the tariffs are finally hiked, it could represent a problem for us at first if Braskem lowers its prices, for instance – my product acquired pre-import tariff hike would be more expensive and I would have difficulty placing it in the market,” said the distribution source. “If Braskem does not lower its prices immediately, I would be able to maintain my prices. But if prices drop, I would be facing higher costs and lower selling prices: my margins would be greatly squeezed.” Focus article by Jonathan Lopez Additional reporting by Bruno Menini

28-May-2024

PODCAST: Asia R-PET to outperform R-PP, R-PE in H2 2024

SINGAPORE (ICIS)–Recycled polymers markets in Asia face different market dynamics, driven by various factors such as additional capacities, inflationary pressures and support from downstream demand. Asia R-PET trade to gain support from new extrusion capacities within Asia, long-haul markets Asia R-PE could continue to perform poorly in H2 amid cheaper virgin PE prices, inflationary pressures impacting finished good demand Asia R-PP could garner support from automotive sector uptake; trade expected to be moderate until end of 2024 In this podcast, Asia recycling senior editor Arianne Perez discusses what lies ahead in the recycled polymers markets, in terms of trends and opportunities.

28-May-2024

Latin America stories: weekly summary

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the week ended on 24 May. NEWS Brazil’s Triunfo petchems restart odd one out as wider industry still disrupted – consultant Most of Rio Grande do Sul’s industrial plants remain shut or operating at very low rates as the Brazilian state reels from the floods, with the restart at the Triunfo petrochemicals hub an exception rather than the norm, a chemicals consultant at MaxiQuim said to ICIS. Mexico’s Orbia/Vestolit's Altamira plant ceases operations due to water scarcity Orbia/Vestolit ceased operations at its Altamira, Tampico facilities in Mexico on 21 May due to water scarcity. The company operates there a polyvinyl chloride (PVC) facility with a production capacity of 690,000 tonnes/year. The company estimates it could resume activity on 19 June. SABIC declares force majeure at Tampico Mexico ABS plant SABIC Innovative Plastics Mexico (SABIC) declared force majeure at its Tampico, Mexico acrylonitrile butadiene styrene (ABS) plant on 23 May. The products affected include CYCOLAC ABS.  This facility has a capacity of 30,000 tonnes. Mexico’s Q1 GDP grows 0.3%, economic activity remains healthy in MarchMexico’s GDP rose by 0.3% in Q1, an acceleration from Q4’s 0.1% quarterly growth, the country’s statistic office Inegi said on Thursday. Brazil’s antitrust authority paves way for Petrobras to shed refinery sales Brazilian state-owned energy major Petrobras has been allowed by the country’s antitrust authority CADE to backtrack on planned refinery sales. Argentina’s manufacturing down nearly 20% in March Argentina’s petrochemicals-intensive manufacturing output fell in March by 19.6% year on year, the country’s statistics office, Indec, said this week. Brazil’s Unigel creditors mull fertilizers divestment The debt restructuring agreement at Unigel, under which the Brazilian chemicals producer’s creditors are to take a 50% equity stake, could result in a divestment of the company's beleaguered fertilizers division. Brazil’s Unigel to give creditors 50% equity stake in debt restructuring Unigel has obtained the support of enough creditors for a debt restructuring plan although it comes at a price as they will be getting a 50% equity stake in the Brazilian chemical and fertilizer producer. Brazil's Braskem restart at Triunfo to kick off petchem hub normalization Braskem has restarted operations at its Triunfo facility in the flood-hit state of Rio Grande do Sul, which will allow other players in the petrochemicals hub to start up their plants as many depend on input from the Brazilian polymers major to operate. INEOS Styrolution declares force majeure at Altamira Mexico facility INEOS Styrolution declared force majeure at its facility in Altamira, Mexico, on 20 May. The products affected include Teluran ABS, Novodur High Heat ABS and Luran ASA. This facility has a capacity of 113,000 tonnes. Chile’s Q1 GDP up 2.3% on strong consumption, manufacturing up 1.1% The Chilean economy started 2024 on a strong footing with GDP growth in the first quarter at 2.3%, year on year, the country’s central bank said on Monday. Volkswagen, Stellantis idle car plants in Brazil, Argentina after floods Volkswagen (VW) idled its three plants in the Brazilian state of Sao Paulo on Monday, as suppliers in the floods-hit state of Rio Grande do Sul are unable to produce any automotive parts, a spokesperson for the German automotive major told ICIS. PRICING LatAm PP international prices stable to up on higher Asian freights International polypropylene (PP) prices were assessed as steady to higher across Latin American countries due to the surge in freight rates from Asia to the region. LatAm PE domestic, international prices steady on sufficient supply, stable demand Domestic and international polyethylene (PE) prices were assessed unchanged this week across Latin American countries on the back of sufficient supply and stable demand.

27-May-2024

Europe top stories: weekly summary

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 24 May. Brenntag CEO says Europe must play to its strengths Europe’s chemical sector is seeing a wave of commodity production closures, which is likely to accelerate as the region is suffering from structurally higher energy costs and depressed margins since it lost access to cheap Russian gas. Europe epoxy sentiment stable, Asia imports may face EU antidumping claim Europe epoxy resins prices have been mainly agreed with rollovers for May so far, in spite of a drop in feedstock costs this month. Speculation is also growing over EU anti-dumping claims against Asian imports. Europe naphtha and gasoline prices firm on improved liquidity, summer optimism Liquidity in Europe's naphtha and gasoline markets improved in the week to 17 May as stable-to-soft prices encouraged buying appetite, just as the market is gearing up for an uptick in demand ahead of the summer holidays. Europe PE, PP contract prices down beyond monomer for May Europe’s polyethylene (PE) and polypropylene (PP) freely negotiated prices for May are down, with variance by grade

27-May-2024

Asia top stories – weekly summary

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 24 May 2024. INSIGHT: Asia plasticisers producers brace for mounting selling pressure amid soaring freight rates By Julia Tan 24-May-24 12:00 SINGAPORE (ICIS)–Recently surging freight rates have led to a largely pessimistic outlook for the Asia plasticisers spot market, particularly for producers who rely heavily on export sales, as higher freight rates will continue to keep selling pressure high as sellers find it difficult to move product out of the region. SE Asia PE June offers firmer due to shipment delays, tight supply By Izham Ahmad 24-May-24 11:16 SINGAPORE (ICIS)–Initial spot import offers for June shipments of polyethylene (PE) in southeast Asia were announced mostly firmer so far in the week ending 24 May, with gains driven by tight supply, which is being aggravated by delays in cargo delivery from the Middle East. US tariff hikes on China EVs, batteries take effect 1 August By Fanny Zhang 23-May-24 13:37 SINGAPORE (ICIS)–Starting August, US tariffs on imports of electric vehicles (EVs) from China will quadruple to 100%, while those for battery materials will more than triple to 25%, the US Trade Representative (USTR) said. Freight rates on China exports soar amid Red Sea crisis By Fanny Zhang 22-May-24 11:56 SINGAPORE (ICIS)–Freight rates for China's exports, including petrochemicals, have been spiking in recent weeks and are expected to remain firm in the next three to six months on the back of improving overseas demand and amid continued logistics disruptions in the Middle East. INSIGHT: China's industrial activity gathers pace but lopsided April data clouds outlook By Nurluqman Suratman 21-May-24 12:00 SINGAPORE (ICIS)–China's industrial output grew by 6.7% year on year in April, signalling a further strengthening of its manufacturing sector, but weaker retail sales and bleak property data suggest that its overall growth momentum remains weak. INSIGHT: Asia MEG market continues to brace for headwinds By Judith Wang 20-May-24 20:17 SINGAPORE (ICIS)– Asia monoethylene glycol (MEG) market continues to face headwinds in the near term as it is grappling with the ample supply in China and soft global textile demand. Asia IPA supported by acetone strength; demand lagging By Joy Foo 20-May-24 14:13 SINGAPORE (ICIS)–After seeing a sharp increase in late April, tracking a surge in feedstock acetone cost, Asia’s isopropanol (IPA) spot prices have remained buoyant on cost support.

27-May-2024

LOGISTICS: Container rates surge, chem tanker rates ease; Canada rail strike unlikely before July

HOUSTON (ICIS)–Rates for shipping containers continued to surge, liquid chemical tanker rates were flat to softer, and a possible freight rail strike in Canada is unlikely before mid-July, highlighting this week’s logistics roundup. CONTAINER RATES The global average for shipping containers has surged past the level seen in late January because of unseasonal increases in demand for ocean freight ex-Asia, as shown in the following chart. Rates are being pressured higher because of possible start of a restocking cycle in Europe and as US importers pull forward some peak-season demand on concerns of pending labor issues or additional Red Sea disruptions later in the year, according to Judah Levine, head of research at online freight shipping marketplace and platform provider Freightos. Rates for containers ex-Asia to both US coasts and to Europe are also nearing multimonth highs, as shown in the following chart. Drewry expects the spike in spot freight rates to lessen in the next few months. But Levine pointed to general rate increase (GRI) announcements for June, which he said indicate that carriers are not expecting demand to ease or conditions to improve in the short term. CMA CGM is setting Asia – north Europe rates at $6,000/FEU (40-foot equivalent unit) starting 1 June, and Hapag-Lloyd has announced an Asia – North America Peak Season Surcharge of $600/FEU to start June that will climb to $2,000/FEU mid-month. Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), are shipped in pellets. They also transport liquid chemicals in isotanks. LIQUID CHEM TANKER RATES Rates for liquid chemical tankers ex-US Gulf were flat to lower this week. US chemical tanker freight rates assessed by ICIS were mostly steady to lower as rates fell from the US Gulf (USG) to both Asia and India while also edging lower from the USG to Rotterdam. However, were unchanged from the USG to Caribbean and South America. Overall, the market was subdued entering the long holiday weekend. From the USG to Asia, this market has remained overall soft despite a few larger monoethylene glycol (MEG) parcels being seen in the market. From the USG to Rotterdam, it has remained quiet again this week, with available space for part cargo still open amid a lack of inquiries or interest from charterers. CANADA FREIGHT RAIL LABOR ISSUES A possible freight rail strike in Canada is not likely to begin before mid-July, according to rail carrier Canadian Pacific Kansas City (CPKC). The ongoing uncertainties over the looming strike make it hard for Canadian chemical, fertilizer and other industrial producers, in particular exporters, to prepare for a work stoppage. After about 9,300 unionized conductors, train operators and engineers at freight rail carriers CPKC and Canadian National (CN) earlier this month voted for a strike as early as 22 May. Canada’s federal labor minister referred the matter to the Canada Industrial Relations Board (CIRB), a quasi-judicial tribunal charged with keeping industrial peace in Canada. PORT OF BALTIMORE The full reopening of the Port of Baltimore is closer after the Key Bridge Response Unified Command (UC) refloated the container ship Dali on Monday morning and moved it away from the scene of the collision. The Dali struck the Francis Scott Key bridge on 26 March, causing its collapse, and essentially closing the port. The closing of the port did not have a significant impact on the chemicals industry as chemicals make up only about 4% of total tonnage that moves through the port, according to data from the American Chemistry Council (ACC). PANAMA CANAL Wait times for non-booked southbound vessels ready for transit fell this week for traffic in both directions, according to the Panama Canal Authority (PCA) vessel tracker and as shown in the following image. Wait times a week ago were 3.6 days for northbound vessels and 13.9 days for southbound vessels. With additional reporting by Kevin Callahan and Stefan Baumgarten

24-May-2024

VIDEO: Europe R-PET looking at a more stable market for June

LONDON (ICIS)–Senior editor for recycling Matt Tudball discusses the latest developments in the European recycled polyethylene terephthalate (R-PET) market, including: More stable outlook for June looking likely Lower-priced PET could limit June offers Italian bale prices, PET imports could impact R-PET in coming weeks

24-May-2024

DuPont flags $60 million in dis-synergies from break-up, assures on PFAS liabilities

HOUSTON (ICIS)–DuPont expects about $60 million in dis-synergies from its break-up into three independent publicly traded companies, CEO Ed Breen and CFO Lori Koch told analysts in a conference call on Thursday. The US specialty chemicals and materials company announced late on Wednesday that it plans to separate its electronics and water businesses into two publicly traded companies while the existing DuPont, dubbed “New DuPont”, will continue as a diversified industrial company. The dis-synergies were largely related to insurance, audit fees, leadership and boards, that is, “public company stand-up costs”, Koch said. The dis-synergies were “not a huge number” and would be across all three companies, she said. As for separation costs, those are estimated at $700 million, with the biggest cost items being IT separation and tax, legal and audit work, she said. DIVESTMENT NOT RULED OUT While DuPont is pursuing spin-offs and is not running a parallel M&A processes for electronics and water, it does not entirely rule out divesting them. “If somebody wants to call and propose something, we are going to listen to it,” Breen said in response to analysts' questions. He also said that the water business, which is relatively smaller, may be spun off before electronics. The timing for the separations is good as markets are coming out of destocking cycles, Breen noted. Especially in semiconductors, “we are going into a real upcycle”, he added. DuPont has been working on the separation for about six months and expects to complete it within the coming 18-24 months, he said. The relatively long completion timeline is mainly due to tax matters as DuPont intends to execute tax-free separations, he said. In some of the countries where DuPont operating, a separated business must be run for a full 12 months before it gets tax-free status, Breen said. New DuPont, with annual sales of $6.6 billion, and the electronic spin-off (sales: $4.0 billion), are expected to have investment-grade balance sheets whereas the smaller water business (sales: $1.5 billion), may not, Koch said. PFAS As for DuPont’s liabilities for poly- and perfluoroalkyl substances (PFAS), those will be allocated between the three companies pro rata, based on their earnings before interest, tax, depreciation and amortization (EBITDA) in the last year before the spin-off, Breen said. The amount of PFAS liabilities may not be that large as DuPont expects to “make great progress” on settling claims by the time the spin-offs will be completed in 18-24 months, he said. BREEN’S NEW ROLE Breen will step down as CEO on 1 June, to be succeeded by Koch. However, he will continue as full-time executive chairman of DuPont’s board of directors, focusing on the separations, including the appointment of the spin-off companies’ boards and the hiring of their management teams. Breen would not rule out that he may join the boards of the electronics and water spin-offs but added that a decision has yet to be made. PROFILES OF THE THREE COMPANIES' MARKETS New DuPont, focused on healthcare, advanced mobility, and safety & protection: Electronics, focused on semi-conductors and interconnect solutions: Raw materials used by the electronic business include, among others, monomers, pigments and dyes, styrenic block copolymers, copper foil, filler alumina, nickel, silver, palladium, photoactive compounds, polyester and other polymer films, polyethylene (PE) resins, polyurethane (PU) resins, polyvinyl chloride (PVC) compounds and silicones, according to DuPont's website. Water, focused on reverse osmosis, ion exchange, and ultra filtration: Raw materials used by the water business include, among others, methyl methacrylate (MMA), styrene, polysulfone, high density polyethylene (HDPE), polyethylene (PE), aniline, calcium chloride, caustic and sulfuric acid, according to DuPont's website. DuPont's shares traded at $78.44/share, down 0.13%, at 11:00 local time on the New York Stock Exchange. With additional reporting by Al Greenwood Thumbnail photo source: DuPont

23-May-2024

BLOG: A personal view of the new petrochemicals world

SINGAPORE (ICIS)–Click here to see the latest blog post on Asian Chemical Connections by John Richardson: Here is a personal view of where the petrochemicals world is heading with the conclusions or scenarios from today’s post detailed below (the debate is the thing as this is how we move forward together): The US chemicals industry (with benefits trickling down to Canada) continues to thrive thanks to the Inflation Reduction Act, tariffs and feedstock advantages. Local demand growth could surprise on the upside as local investments, especially in greener petrochemicals production, continue. Dow Chemical is, for example, pressing-ahead with its two-phase plans for developing its site at Fort Saskatchewan in Canada, involving lower-carbon capacity additions. It is also talking about building a lower-carbon cracker in the US Gulf later-on which would be “scrap and build” – shutting down an older higher-carbon cracker complex. Europe sees a new industrial master plan. It won’t be perfect, there will be lots of trial and error and the problems will remain of coordinating government policies across the 27 EU members, enforcing EU-level policies that are only directives rather than regulations and the complexity of policies (the EU Green Deal is some 40,000 pages long). But Europe moves towards unified electricity, plastic-waste and bio-feedstock markets that the Antwerp Declaration called for. Some capacities are rationalized. A combination of these shutdowns, more protection and more EU-wide coordinated support for green incentives return the industry to good profitability. Crucially as renewable electricity capacity increases, European energy and thus electricity costs decline. China’s chemicals demand grows at 1-3% per year, down from long-term historic growth rates of around 10% or more. This places major pressure on the big petrochemical exporters to China – South Korea, Singapore, Taiwan, the Middle East and on the US in these products – PE, PVC and MEG. Weaker-than-forecast Chinese demand growth combines with increased Chinese self-sufficiency. This reduces the size of import markets. As regards self-sufficiency, China pushes its operating rates higher in order to minimize imports in response to supply-chain insecurities arising from geopolitical tensions. But China’s petrochemicals exports struggle because of the increase in trade measures. China is a well-established major exporter in PVC, PTA, polyester fibres and PET bottle and fibre grades. More recently it became a major exporter in PP. Trade measures against China provide opportunities for other exporters. As petrochemicals markets become more regional, some of the big new export-focused petrochemicals projects come into question. Editor’s note: This blog post is an opinion piece. The views expressed are those of the author, and do not necessarily represent those of ICIS.

23-May-2024

Brazil’s Braskem restarts Triunfo facilities after flooding

SAO PAULO (ICIS)–Braskem has restarted its facilities at the Triunfo petrochemicals hub in the floods-hit state of Rio Grande do Sul, a spokesperson for the Brazilian polymers major said to ICIS on Monday. Braskem said it hopes to have all facilities up and running normally in 15 days. Triunfo represents around 30% of Braskem’s production capacities in Brazil. The company said the restart will be undertaken by phases, as long as weather and access to the site allows. While most petrochemicals plants at Triunfo were not damaged by the flooding, access of workers as well as inputs into the plants was very difficult as the floods blocked several roads in the state. Braskem and other chemical companies at Triunfo declared force majeure at the beginning of May. “In recent days, our teams have been focused on seeking safe conditions to resume production and, thus, contribute more actively to the supply of raw materials for the production of important items for this time of need,” said Braskem’s industrial director, Nelzo da Silva. “To start up the plants, it will be necessary to activate the flare, a standard safety device used by the chemical and petrochemical industries. As part of this process… in the coming days, residents in the area may notice a different light than usual coming from our factories.” Braskem is Brazil’s sole manufacturer of polyethylene (PE) and polypropylene (PP), the most widely used polymers. Its market share in 2023 for PE stood at 56% and for PP at 70%, according to figures from the ICIS Supply and Demand Database. The Triunfo complex, meanwhile, is key for the country’s polymers supply chain, accounting for nearly 37% of Brazil’s PP capacity and 40% of PE capacity. Brazil’s PP production capacity is nearly 2 million tonnes/year. PE capacity is about 3 million tonnes/year, with 41% being high density polyethylene (HDPE), 33% being linear low density polyethylene (LLDPE) and 26% being low density polyethylene (LDPE). Braskem’s Triunfo complex can produce 740,000 tonnes/year of PP, 550,000 tonnes/year of HDPE, 385,000 tonnes/year of LDPE and 300,000 tonnes/year of LLDPE. Front page picture: Braskem's facilities in Triunfo Source: Braskem Additional reporting by Bruno Menini

20-May-2024

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