Investor Presentaiton
2016 Braskem | Annual Report
9
Markets and
New Fronts
G4-8
Petrochemical production focuses
on transforming oil by-products,
usually naphtha and natural gas,
into materials for industrial use
or into end products intended for
society.
This is a fundamental sector
for the growth of the economy
and the development of modern
society for its potential of
creating new solutions and
materials from chemistry and
plastic, capable of providing
more practicality for people's
daily lives and reducing the levels
of environmental impacts in
different market segments, such
as construction, agribusiness,
automotive, among others.
Given these characteristics,
the petrochemical industry is
constantly evolving technologically.
The market trend follows the line
for diversifying raw materials and
their sources, seeking to develop
renewable inputs. The goal is to
find innovative solutions that are
capable of generating increasingly
more social and environmental
benefits.
commodities
The performance of the sector is
associated with the fluctuation
of prices of chemical and
petrochemical
traded in the international
market. The spreads are formed
from the differences between
the prices of oil and its by-
products, defining/ and they
define the income results of
the industries in the sector.
It is a condition requiring
companies to constantly search
for operational efficiency and
rigid control of production
costs to guarantee the balance
and safety of activities during
challenging moments, resulting
from lower spread cycles.
In 2015 and 2016, the chemical
and petrochemical sector
experienced a high spread
cycle, which boosted the search
for better businesses in key
markets such as the United
States and Europe, places
that showed higher levels of
economic performance. This
context helped offset challenges
in emerging markets, which was
the case in Brazil.
In 2015 and 2016, the chemical and petrochemical
sector experienced a high spread cycle, which boosted
the search for better businesses in key markets such as
the United States and Europe, places that showed higher
levels of economic performance.
According to data from the Brazilian
Chemical Industry Association
(ABIQUIM5), as a result of the
country's political and financial
crisis, the Brazilian chemical
industry in which Braskem's
petrochemical production is also
-
included
dropped from sixth
to eighth place in the sector's
worldwide ranking. Today, the
industry accumulates net sales
of US$ 113 billion, after shrinking
nearly 20% in 2015, having been
surpassed in the international
ranking by France and India, and
followed closely by the United
Kingdom. The top three positions
in the global ranking are occupied
by China, the United States, and
Japan, respectively.
5 Source: ABIQUIM http://www.abiquim.org.br/comunicacao/noticia/detalhe/2433/industria-quimica-brasileira-perde-posicao-no-ranking-
mundial-do-setor (portuguese only)View entire presentation