Braskem's polyethylene sales in Mexico hit 7-year high

Brazilian petrochemicals company Braskem’s second quarter polyethylene sales in Mexico were the highest since 2017.

In a results filing with the Brazilian stock market on Thursday, Braskem said its Mexican unit sold 233,000t of polyethylene in Q2, the most since 3Q17. Sales of the plastic resin were 9% higher than in 2Q23 and 12% up on Q1 this year.

Braskem is the largest plastics producer in the Americas. In Mexico, it owns the 1.05Mt/y Braskem Idesa polyethylene plant in the port city of Veracruz. The US$5.2bn plant began operating in April 2016.

Of the Veracruz plant's sales in Q2, 60% went to the Mexican market, up from 52% a year ago. Polyethylene demand in Mexico increased 4%, Braskem said.

The company is constructing a US$450mn ethane import terminal in Veracruz to ensure a more reliable supply of the ethane it needs to produce ethylene and polyethylene. 

Construction of the terminal, which began in July 2022, was 75% complete at the end of June, Braskem said. The project is expected to be completed by the end of this year with operations beginning in 1Q25. 

The import terminal will reduce Braskem's reliance on ethane supply from Mexican state oil company Pemex and allow its plant to operate at a higher utilization rate of capacity.