Mossi & Ghisolfi sticks to 23 May restart of Brazil PET plant

18 May 2011 19:08  [Source: ICIS news]

HOUSTON (ICIS)--Mossi & Ghisolfi (M&G) plans to start up its polyethylene terephthalate (PET) plant in Suape, Brazil, on 23 May, a company source said on Wednesday, although resin buyers voiced concerns about the scheduled restart.

As such, some buyers had been expecting some delay.

Resin availability remains tight in Brazil and Argentina following M&G's 20 April declaration of force majeure on PET supply in Brazil, according to regional sources.

Producers in the US and Mexico said no product was available for export to the region, and noted that PET was tight throughout the Americas.

PET makers in North America said that resin was sold out through at least the first part of the third quarter, severely limiting availability outside of current commitments.

Problems at the M&G plant in Suape first developed after the blackout of early February, which affected the majority of states in Brazil’s northeastern region.

M&G Polimeros Brasil subsequently declared force majeure on PET from 16 March to 28 March.

M&G again declared force majeure on PET supply in Brazil in a letter to customers on 20 April.

According to the communication from 20 April, the plant presented the same issues that resulted in the earlier force majeure declaration, leading the company to believe that damages caused by the February blackout were more extensive than originally estimated.

For more on PET visit ICIS chemical intelligence

By: Ron Coifman
+1 713 525 2653

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