ICIS WEBINAR: Increased hand sanitizer production props up Latam PET demand

HOUSTON (ICIS)–Companies that have shifted production to hand sanitizer amid the coronavirus are helping to sustain demand for polyethylene terephthalate (PET) in Latin America, according to Mayara Correa, ICIS market development manager for South America.

Correa was among several speakers in a webinar, part of a series being hosted by ICIS.

Companies that are not normally in the business of hand sanitizer, one of the most in-demand products globally during the pandemic, have been able to shift production.

Beverage companies and the paints and coatings industry are among those who have been able to produce sanitizer, which some companies have then donated.

Companies such as INEOS and BASF also have increased or added sanitizer production in Europe and the Americas, increasing demand for PET packaging.

US and Latin American PET prices have remained stable in recent weeks, as the spike in demand has counterbalanced plummeting feedstock costs.

In addition, some PET may have been made from much higher priced feedstocks less than two months ago, with much narrower margins.

As the southern hemisphere, in which much of Latin America is located, approaches winter, sanitizer demand is expected to provide some support but bottled drinks will remain the main demand driver for the region, Correa said.

Winter is the traditional low season, but in Latin America bottled drinks drive demand year-round.

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