$BAK $PBR #BRKM5 How might Trump’s 25% tariffs on Mexican goods and Mexico’s retaliatory measures impact the polymer market? I believe this scenario could lead to Mexico increasing its purchases of polymers from Brazil, including products from Braskem. Here’s why:

❗ Reduced Imports from the U.S.
If Mexico imposes retaliatory tariffs on American goods, U.S. polymers will become more expensive and less competitive in the Mexican market. This will likely force Mexican manufacturers and processors to seek alternative suppliers to secure polymers at more affordable prices.

❗Brazil’s Geographical Advantage
Brazil, as a Latin American country, has a geographical edge over regions like Asia or Europe. This proximity simplifies logistics and reduces transportation costs. Braskem, being the largest polymer producer in South America, could capitalize on this opportunity to strengthen its presence in the Mexican market.

❗Braskem’s Diverse and High-Quality Product Range
Braskem offers a wide range of polymers, including polyethylene, polypropylene, and biopolymers, making it an attractive supplier for Mexican manufacturers. Additionally, the company has a solid reputation as a reliable partner in the region, which could play a crucial role in building stronger trade relationships with Mexican clients.

❗ Stable Access to Raw Materials
Braskem has a significant advantage due to its access to ethane infrastructure in Brazil and the U.S. This allows the company to maintain steady production volumes, even amidst market changes. If demand for polymers in Mexico increases, Braskem would be well-positioned to adapt quickly and meet the needs of its clients.

❗Strengthening its Position in Latin America
Rising tariffs between the U.S. and Mexico could create favorable conditions for Brazil to strengthen its role as a key trading partner for Mexico. For Braskem, this represents an opportunity not only to increase its supply volumes but also to solidify its long-term position in the Mexican market, which plays a critical role in the broader Latin American region.

Overall, I think this situation offers Braskem a strong push for growth. Latin America has always been a strategic region for the company, and in the context of increasing protectionism, it has the potential to expand its influence even further. Of course, this would require agility and the ability to respond quickly to new market challenges. However, given the company’s scale and reputation, I believe Braskem is well-equipped to seize this opportunity.

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