Braskem Stops Chlor-Alkali Production In Brazil With 460,000 Tons Per Year

Antonio Freitas, the local union president, stated that Braskem SA has completely shut down its chlor-alkali plant in Maceió, Brazil, and is currently dismantling it for scrap metal recovery. On October 16, Freitas pointed out that this shutdown marks Braskem's exit from the chlor-alkali production sector in Brazil, but the company will continue to operate its downstream polyvinyl chloride (PVC) and vinyl chloride monomer production lines, with feedstock sourced from imported dichloroethane from the United States.

Platts, under S&P Global Commodity Insights, sought comments from Braskem on this matter but received no response.

According to data from S&P Global Commodity Insights, the annual caustic soda production capacity of the Maceió chlor-alkali plant is 460,000 tons. Currently, the total remaining annual production capacity for caustic soda in Brazil is 1.3 million tons. Unipar Carbocloro is the largest caustic soda producer in Brazil, with a combined annual capacity of 607,000 tons across its four plants; it is followed by Dow, whose single plant has an annual production capacity of 468,000 tons.

On October 14, a PVC trader revealed that two distributors and several Braskem customers have confirmed the shutdown of the Maceió caustic soda plant. The source also pointed out that "both PVC and polyethylene (PE) will be significantly affected," as this shutdown exacerbates the current uncertainty surrounding Braskem's situation.

The United States is the main supplier of caustic soda to Brazil. U.S. caustic soda producers anticipate that the demand from Brazil for U.S. caustic soda will increase due to Braskem's exit from chlor-alkali production.

Brazil is the main export destination for U.S. caustic soda. According to data from the United States International Trade Commission, from January to July 2025, Brazil accounted for 53% of U.S. caustic soda exports, the same proportion as in 2024.

A local market source stated that Braskem's long-term contract customers have begun seeking alternative supply sources, both by negotiating with external suppliers and by reaching out to another Brazilian caustic soda producer, Unipar. The source said, "All parties will be vying for this market share."

On October 14, the spot export price of caustic soda assessed by Platts Energy Information for the U.S. Gulf Coast was $400 per dry metric ton (FOB), down $30 from the previous week.

According to data from the Brazilian government, the United States accounted for 93% of Brazil's caustic soda imports from January to September 2025.