Sao Paulo—Brazilian petrochemical producer Braskem's recycled resins and chemicals global sales reached 5.752 million mt in the fourth quarter, up 290% on the year and 310% on the quarter, the company said March 11.
According to Braskem, the increases were "due to the strong demand for plastic resins, mainly from the retail sector, and increase in production capacity of recycled resins, given the new partnership with recyclers, with a consequent increase in the supply of products expansion of the portfolio," it said in its earnings results."Under the new commitments relating to sustainability, the priority actions will focus on building a recycling line with production capacity of 14,000 mt of post-consumer resins, with startup expected for the fourth quarter of 2021; investing in projects to develop new technologies for chemical recycling; investing in energy efficiency and modernization initiatives, such as replacing steam turbines with electric engines and biomass-fired steam generation to replace fossil fuels; and researching a new production route for ethylene applying technology for capturing and using the carbon dioxide (CO2) emitted by industrial processes," Braskem said in its earnings release.
In Brazil, recycled resins sales were 1.865 million mt in the Q4, up 389% quarter on quarter and 174% year on year.
Green chemicals sales in Brazil were 584,000 mt in the latest quarter, up 42% on the quarter and 35% on the year.
In terms of spread regarding green and virgin resins, the calculation is different, said CFO Pedro Freitas on March 11 during the company earnings call. "In virgin PE, ethane price and naphtha are the differentials, while for Green PE is ethanol. It is a different type of perspective, less volatile," Freitas said. "$150 per ton is the spread right now [between green and virgin polyethylene]."
In the US and Europe, resins sales were 921,000 mt, up 154% on the year and 184% on quarter due to the economic recovery and higher demand, plus the start of recycled operations in Europe.
In Mexico, sales were 2.383 million mt in the Q4, up 736% quarter on quarter, when such operations started.
Braskem said sales of green polyethylene, resin made from the feedstock ethanol, were lower by 5% on the year and 4% on the quarter at 39,902 mt, due to the rebuilding of inventory.
The Green Ethylene utilization rate was 98% in the Q4, compared to 79% in the Q3 and 79% compared to the same period in 2019.
