Alpek’s record Q2 PET margins hit US$336/ton as geopolitical turmoil drives packaging resin volatility

MEXICO – Alpek has reported a record-breaking second quarter with comparable EBITDA surging 169% year-over-year to US$336 million, driven by Chinese PET reference margins peaking at US$336 per ton in May amid Middle East supply disruptions and elevated ocean freight costs.

The Mexico-based petrochemical company, one of the largest polyester and plastics producers in the Americas, raised its full-year 2026 comparable EBITDA guidance to between US$750 million and US$800 million, up from previous expectations. 

Operating free cash flow is projected to reach US$300-350 million. 

CEO Highlights Customer Support and Supply Chain Resilience

Jorge Young, CEO of Alpek, attributed the strong performance to both favourable industry conditions and the company’s operational readiness during a period of significant market volatility. 

He noted that the Middle East conflict continued to impact global supply throughout the quarter, leading to trade disruptions, higher reference margins and elevated ocean freight costs. 

The company successfully secured 100% of raw material supply despite significant challenges, with supply chains now appearing robust. 

Young also emphasised the critical role customer relationships played in navigating elevated costs, noting that the vast majority of customers supported the pass-through of additional costs.

PET Margin Outlook and Geopolitical Uncertainty

Young provided detailed commentary on PET margin dynamics, noting that second quarter Chinese PET margins reached close to US$300 per ton, with strong performance in March, April and May before some declines through June and July. 

He acknowledged uncertainty about whether recent oil price escalations would translate into sustained margin improvements, noting that this would depend on whether the latest events translate into additional supply disruption. 

While expecting some normalization from peak levels, Young suggested margins may remain above the depressed levels seen in 2025. 

The company has also shifted toward building longer-term customer relationships rather than relying on spot market transactions. 

Looking ahead to the second half, Young acknowledged ongoing uncertainty related to geopolitical developments, including potential disruptions in the Red Sea affecting ocean freight and carrier availability for both feedstocks and finished products.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE