MEXICO CITY (Oct. 20, 1:55 pm.. ET) — Packaging uses should help the Mexican polypropylene market eke out a small gain this year.
“The film market has been performing the best so far this year,” Angel Garza of PP maker Indelpro SA de CV said at Plastimagen 2011, held Oct. 4-7 in Mexico City. Garza is a sales administrator with the firm, which is based in Garza Garcia. He added that he expects Mexican PP demand growth to come in at 2 percent for 2011.
“There's been a lot of activity in food packaging,” Garza said. “We've introduced some new BOPP film grades. That market is really big, and we're also going to introduce some high melt flow grades in homopolymer and copolymer by the middle of next year.”
Indelpro opened a plant with almost 530 million pounds of annual PP capacity in Altamira in 2005, and added almost 1 billion pounds of capacity there in 2008. The firm is a joint venture between Mexican conglomerate Alfa SA de CV and global PP leader LyondellBasell Industries.
Garza added that reduction in the amount of imported PP has helped Mexican domestic growth this year. The material has retained a strong position in the Mexican caps and closures market, but has seen some recent competition fro polystyrene and high density polyethylene as PP prices have increased.
Mexican PP sales also have been strong into PP-based compounds used in the automotive and appliance markets, Garza added.
Looking ahead to 2012, he said that Mexican PP demand growth could be as high as 3-4 percent.