05 October 2010 23:15 [Source: ICIS news]
PET demand was slow due to the heavy rains in Mexico’s southeast, but resin prices were pressured up by more expensive feedstocks.
Sources said Mexico’s PET domestic and export prices would rise in October by at least 2.5 cents/lb, driven by more expensive feedstock paraxylene (PX) costs.
A month-long planned maintenance at the PET production facility in Queretaro during September was successfully completed, sources said. However, restart of the plant was delayed until early next week, due to logistics issues transporting feedstocks to the site.
Although production facilities were operating, logistics were seriously affected by flooding, with substantial damages to roads and railroad infrastructure. Local sources said raw materials could not reach production sites, while finished product could not leave the plants.
The southern region of Veracruz was under water due to former Tropical Storm Matthew, and destruction from September's Hurricane Karl was evident in the central coastal zone, according to Mexico’s El Universal news organisation.
Damages from Karl extend to 170 municipalities, more than 4,500 communities and 1m people, according to the reports. Media reports included news of evacuations and government assistance to the region.
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