MOSCOW (MRC) -- Alpek swung to a first-quarter net loss of USD6m amid poorer demand due to high polyethylene terephthalate (PET) inventory levels in the market, said the Mexican polyester producer.
Overall sales volumes fell by 5% year on year to 1.16m tonnes in the first quarter, with total production down by 9% year on year to 1.38m tonnes in the first quarter.
"The polyester segment experienced softer demand throughout the quarter due to high PET inventory levels in the market, particularly at the beginning of the year, a decrease in exports, as well as continued seasonality," said Alpek CEO Jorge Young in the statement.
"However, despite lower demand in the polyester & chemicals segment in certain industries and rising polypropylene (PP) supply in the Americas, volume remained slightly above that of last quarter," he said.
We remind, Alpek, Indorama and FENC announced earlier that Corpus Christi Polymers (CCP) will resume construction on the facility in August. The plant is expected to begin production of polyethylene terephthalate (PET) and purified terephthalic acid (PTA) in early 2025. Construction of the state-of-the-art plan is resuming following a period of pandemic-related disruptions. The new facility is expected to be the largest vertically integrated PTA-PET production plant in the Americas, with annual capacities of 1.1m tonnes of PET and 1.3m tonnes of PTA. It will employ three state-of-the-art technologies.