Mexico-based chemicals producer Orbia reported an increase in second-quarter sales volumes across segments, even with its Altamira plant temporarily shut for part of the period.
Second-quarter revenue decreased by 9pc from a year earlier to $1.976bn as lower pricing outweighed steady to higher volumes in most segments.
Orbia's polymer solutions business, which produces polyvinyl chloride (PVC) and related products, reported $644mn in revenue, little changed from a year earlier. Production volumes increased by an undisclosed amount despite a force majeure declaration at Orbia's 690,000 t/yr PVC Altamira plant for over a month. The plant has since resumed operations. Most additional volume was sold to consumers in the US and UK, where economic recovery drove demand.
Revenue in Orbia's building and infrastructure business, which makes pipe and fittings, fell by 5pc on the year to $665mn on lower volumes in Europe and Latin America.
In the second half of the year, polymer solutions end markets are expected to remain relatively flat, although demand is "strong" in the polymer solutions specialty compounds business, chief executive Sameer Bharadwaj said on an earnings call Thursday. PVC pricing is stable, but a potential decline remains a risk. Still, prices will receive support from declining Chinese exports and European anti-dumping duties on US exports. In the building and infrastructure business, demand is improving, partly because of seasonality, he said.
