Alpek S.A.B. de C.V.

We continue to expect that Alpek will maintain a solid financial performance for the next 12-18 months due to stronger volume sales (mainly in the polyester division) and higher demand in its end-markets such as the consumer products, food, and beverage markets, among other industries (which continue to require PTA-PET and polypropylene for packaging their products). These changes stem from shifting consumer patterns due to the COVID-19 pandemic. Additionally, we expect the plastics-chemicals business unit to reinforce Alpek's revenues, with higher product demand for some plastics like expandable polystyrene (EPS)--the main raw material for packaging and isolation products (products for thermal purposes used for temperature control, heating and cooling, and damage control, among other uses)--and polypropylene (PP), considering its end

...Even amid the recession, higher demand for Alpek's products will improve its financial performance through higher volume sales. In the first half of the year, the company's sales were pressured by lower sales prices in its main business unit, polyester chain (PTA-PET production). However, polyester margins remained strong, and paraxylene prices started to recover by the end of the second quarter as oil prices began to improve. This effect boosted the company's results through a combination of better polyester margins and higher volumes sales, mainly because of increasing demand for PTA-PET. We continue to expect that Alpek will maintain a solid financial performance for the next 12-18 months due to stronger volume sales (mainly in the polyester division) and higher demand in its end-markets such as the consumer products, food, and beverage markets, among other industries (which continue to require PTA-PET and polypropylene for packaging their products). These changes stem from shifting...

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