APLA '17: Latin America PET market focuses on impact from M&G

12 November 2017 17:46 Source:ICIS News

RIO DE JANEIRO, Brazil (ICIS)--Polyethylene terephthalate (PET) market participants in Latin America remained concerned about the ongoing issues that producer Mossi & Ghisolfi is facing, sources said on Sunday.

PET supply has tightened in the Americas and resin prices have risen amid talk that M&G is having difficulty obtaining feedstock purified terephthalic acid (PTA) to continue operating, market participants said on the sidelines of the annual meeting of the Latin American Petrochemical Association (APLA).

M&G filed for bankruptcy last month under Chapter 11 protection in the US.

However, PET availability has eased for M&G buyers that faced short supply, as the company has partially restored production at its plants in Brazil and Mexico, the sources said.

In Brazil, M&G continues operating at about a 70% rate with PTA supplied by Petroquimica Suape (PQS) and by Alpek, market sources said.

Although a permanent solution to M&G’s issues appears not to be likely in the short term, market talk suggests that several options are being considered, from M&G obtaining lines of credit to M&G selling company assets, the sources said.

M&G could not be immediately reached for comment.

The APLA annual meeting runs through Tuesday.

By Ron Coifman