Although “exceptionally strong” results from war-related tailwinds in Q2 are expected to moderate in the coming months, PET producer Indorama Ventures says the underlying trends remain positive.
And in an Aug. 11 statement, the Thailand-headquartered company said its PET business benefited the most from its “local for local” abilities.
As a result of supply-chain constraints, Indorama and other plastics producers including Mexico’s Alpek experienced Q2 tailwinds as buyers looked for regional supply to avoid their own production disruptions.
Chinese PET margins head skyward
Chinese integrated PET margins ballooned in the second quarter, amid supply-chain impacts from the war in Iran, Indorama said.
Margins reached $279 per ton, higher by almost 60% on the quarter and more than double year-ago levels. Drivers included lower operating rates and limited new capacity, on top of war-related supply disruptions and subsequent spikes in feedstock prices including crude oil.
However, in July margins eased to $184/ton.
In line with the margin expansion, the company reported global integrated PET sales volumes of 1.91 million metric tons (mt). But Q2 PET EBITDA soared, reflecting pricing spikes.
| Q2 2026 | Q1 2026 | Change QoQ | Q2 2025 | Change YoY | |
| Sales volume (million mt) | 1.91 | 1.94 | -1% | 2.02 | -5% |
| EBITDA (converted to USD from THB) | $309m | $166m | +86% | $135m | +128% |
Despite the stronger pricing in Q2 and reflecting the lower sales volumes, Indorama reported a 74% global plant utilization rate, down by 2 points on the quarter and by 4 points on the year.
In addition, integrated production in the company’s North American assets benefited from cost-advantaged shale gas feedstocks, helping to offset higher crude-oil linked production costs during the quarter and lower sales volumes.
For the recycling business, H1 EBITDA improved by $17.2 million.
Asia and Africa packaging results soar
In emerging markets, the company’s Indovida rigid packaging segment serving Asia and Africa reported Q2 sales volumes of 90,000 mt, higher by 11% on the year. In contrast, the segment’s EBITDA rose by 62% on the year to THB 1.31 billion ($39.5 million).
Drivers for the strong performance included new production in Tanzania and higher war-related pricing.
In late March, Indorama announced Indovida would merge with Indian flexible packaging producer EPL, with the deal expected to close within 12 months. Indorama will hold 51.8% ownership and Blackstone – which backs EPL – will own a 16.6% stake. The company did not provide an update in the latest investor briefing.
At the time, the companies said the merger would create one of the largest emerging-markets packaging platforms.
