Chemical industry calls for competitiveness agenda after Braskem's debt filing

Brazil's chemical industry is urging the government to implement a national competitiveness agenda, a plea amplified by Braskem's recent filing for judicial recovery to renegotiate R$ 56.5 billion in debt. The Brazilian Chemical Industry Association (Abiquim) stated that the petrochemical giant's situation underscores the urgent need for state-level action to bolster the sector.

Abiquim pointed to challenging business and financing environments that hinder investment, even when market demand and production capacity exist. The association noted that the chemical sector faces a "structural imbalance," evidenced by a $56.8 billion trade deficit last year and a mere 64% utilization of installed capacity in 2025. This situation directly affects numerous critical industrial chains, including plastics, packaging, construction, automotive, agribusiness, healthcare, and consumer goods.

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The sector faces a structural imbalance that translates into significant numbers.

The rising cost of petrochemical inputs is a significant concern, impacting the competitiveness of Brazilian industries across the board. Abiquim's call for a "state agenda" suggests a need for coordinated government policies to address these systemic issues and improve the overall business climate for the chemical sector.

Braskem's financial distress serves as a stark warning, highlighting the vulnerability of key industries to economic headwinds and the importance of supportive policies. The company's need to restructure a substantial portion of its debt signals broader challenges within Brazil's industrial landscape, prompting calls for strategic interventions to ensure the sector's long-term viability and growth.

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The trade deficit reached US$ 56.8 billion last year. At the same time, the industry ended 2025 using only 64% of its installed capacity.