For the Quarter Ending March 2024
North America
During the first quarter of 2024, the BOPET film market in North America experienced a challenging period. During January, the US market was significantly impacted by logistical difficulties and less favorable downstream activity, which has led to a decline in resin demand caused by panic buying. As a ripple effect, the disruptions in US export markets have forced shipping routes to shift, which has resulted in higher spot freight prices in these particular locations. However, the BOPET market has not been significantly affected by the shipping issues due to a decline in orders from the downstream PET bottles and packaging industry which resulted in an overall monthly decline in prices.
However, during February, various factors, including the Red Sea conflict and disruptions in the supply chain, led to increased transportation costs and supply disruptions. The demand from the downstream packaging industry was moderate, further impacted by the winter season which exhibited an overall moderate bullishness during this timeframe.
Despite the challenges faced, there were positive buying sentiments from domestic markets and low inventory levels in the region.
APAC
In the first quarter of 2024, the BOPET Film market in the APAC region faced moderate supply conditions, resulting in a negative market sentiment. Despite the availability of abundant feedstock PET supply and strong demand from downstream packaging businesses, foreign sales declined and buying activity was subdued. The increase in feedstock PTA and MEG prices impacted overall product costs and led to higher production costs. However, healthy offtakes from downstream industries were observed, and suppliers offered discounts to sell their inventory. China, as a key player, experienced moderate demand from the downstream packaging sector, while demand from the FMCG sector was yet to fully materialize. Lunar New Year celebrated in the Asian region which led to achieved a sense of cautious approach amongst buyers. Additionally, inventory levels were at healthy levels, preventing any shortages that could have driven prices up. Looking at the demand side, procurement activity from downstream industries, which utilize BOPET film for various applications, remained subdued after the holiday which resulted in market to showcase a downtrend.
Europe
During the first quarter of 2024, the European BOPET Film market experienced bullishness in pricing. The primary driver for the price increment was the high production costs caused by increases in feedstock PET and challenges in the supply chain system due to adverse weather conditions. Despite the increase in the cost of purchasing virgin BOPET Film, there was a decrease in demand as buying interest in the spot market declined. Although less favorable downstream activities, the recent logistical delays have had a major influence on the market, causing delays in the orders. Interestingly, spot freight prices in European countries have virtually doubled during February. Amidst to German buyers looking for alternate suppliers, European producers have temporarily experienced a spike in requests due to the stoppage, which affects 220,000 tonnes of yearly production. Alpek Polyester UK have announced a force majeure on its polyethylene terephthalate (PET) supply from its Wilton, UK factory during February which disrupted the supply chain activity for downstream BOPET production.
MEA
During the first quarter of 2024, the BOPET Film market in the MEA region faced several challenges that impacted its performance. One of the key factors was the significant increase in PET feedstock prices, which resulted in higher production costs for BOPET manufacturers. As a result, the selling prices of BOPET films also increased. Additionally, the seasonality of the market played a role, with consumer demand for PET-based products decreasing during the cooler months in Saudi Arabia. The volatility of crude oil prices, resulting from persistent geopolitical tensions, was a major contributor to this pattern The disruptions to input freight arrivals stemming from the Red Sea shipping crisis were noted to have impacted business capacity. This crisis also led to delays in delivery times, with companies reporting the poorest supplier performance in a year. Moreover, due to the Ramadan festivities during March, the consumer demand from the FMCG (Fast-Moving Consumer Goods) industry has escalated, as numerous businesses were closed, and suppliers were on vacation, which created scarcity in the domestic market.
For the Quarter Ending December 2023
North America
The North American BOPET Film market witnessed a stable quarter in Q4 2023 with moderate supplies and constant demand from the downstream packaging sector. However, the market rebounded during December due to logistic issues.
The prices of the product remained stable due to the prevailing gap between current inventories in circulation and existing demand. The stability in prices was largely attributed to stable prices of feedstock PET, which stagnated production costs. The constant demand was attributed to moderate purchasing activities by the local populace due to continued increments in the interest rates by the Federal Bank, which confined purchasing outlooks to per requirement.
However, with the surge in the prices of upstream crude oil, the prices of BOPET eventually surged which added to production costs and appreciated prices of the product. Moreover, the US market has been significantly impacted by the recent logistical difficulties. As a ripple effect, the disruptions in US export markets have forced shipping routes to shift, which has resulted in higher spot freight prices in these particular locations. Therefore, the quarter-ending price of BOPET Film 13 µ DDP Los Angeles in the USA was USD 1933/MT.
APAC
The current quarter of 2023 for BOPET Films in the APAC region witnessed mixed market sentiments from bullish to stable market conditions with moderate supply. The prime reasons for the stability in prices were the presence of enough supplies in circulation, stable prices of feedstock PET, and moderate demand from downstream packaging and electronic industries. However, prices of BOPET Films in China were the most affected due to changes in the prices of feedstock PET, which increased production costs during October. The correlation price percentage of China in the current quarter was 0.4%, indicating a bullish market situation. Demand from the Packaging sector was constant as purchasing sentiments eased due to the declining Producer Price Index which again depreciated by 2.5% on a year-on-year basis, Supply however decreased as manufacturing costs climbed up due to increasing prices of feedstock. The prices of BOPET Films have continued their moderately stable trend during November and December in the Chinese market due to stable prices of feedstock PET, which stagnated production costs and the maintenance of an adequate gap between demand and supply. The current quarter-ending price of BOPET Films 13 µ (Spot) Ex-Shanghai in China is USD 1134/MT.
Europe
The current quarter of 2023 for BOPET Films in the Europe region was marked by a bearish market situation followed by a bullish trend during November and December. October witnessed moderate improvement in the sentiments amongst businesses in FMCG industries as the purchasing sentiment amongst the local populace eased. This increased the pressure on the downstream packaging sector of the FMCG industries. Moreover, trading activities outside the Eurozone have also marginally increased which surged the price trend of BOPET. The prices of feedstock PET continued to decline, resulting in a depreciation of 2% in BOPET Film prices. Secondly, demand from the downstream packaging sector remained moderate to low, resulting in an excess supply of the product. Lastly, inflation rates across the UK declined to 4.7%. Germany witnessed the maximum changes in price, with a depreciation of 0.5% due to subdued demand from the downstream bottling sector of the beverage industry due to the onset of the seasonal winter season. The trend for BOPET Film prices in Germany during Q4-2023 was bearish, with a percentage change of -2% from the previous quarter. The price of BOPET Film 13 µ (Spot) FD Hamburg in Germany for the current quarter was USD 1989/MT.
MEA
In the MEA region, the fourth quarter of 2023 for BOPET Film was characterized by significant changes in the pricing of BOPET Film as October witnessed a significant drop in the prices which rebounded marginally during November and again declined during December 2023. The prices in October decreased by 10% compared to the previous quarter, mainly due to the depreciation of feedstock PET prices and the influx of inexpensive imports from China and India. Additionally, the oversupply in the market compelled suppliers to reduce prices to mitigate excess inventories. However, the demand from the downstream packaging sector of the FMCG industries was largely constant. As the price of upstream crude oil dips, so does the cost of producing PET, further contributing to the BOPET price decline. Moreover, the downstream packaging sector, particularly within the FMCG (fast-moving consumer goods) industry, has remained sluggish. With ample BOPET readily available, there's little pressure on converters to pay a premium to settle the latest price of BOPET Film Grade Ex-Riyadh in Saudi Arabia for the current quarter at USD 1824/MT.
For the Quarter Ending September 2023
North America
Prices of BOPET Films witnessed a bullish situation and have increased by almost 1% in the North American market due to the increasing prices of feedstock PET, which have also appreciated by almost 2% throughout the third quarter of 2023. Demand from the downstream packaging industry was constant despite prices of upstream Crude Oil increasing by almost 24%, which further added to the production costs. As interest rates surged, production costs also rose, with factory gate charges also increasing. From the consumer side, purchasing activities increased as increasing interest rates prompted the local populace to stock up on necessities. Internationally, export offers have started to look optimistic as moderate improvements in the economic situations across South and Central American markets were observed, which led to increased purchasing activities in the importing countries Brazil and Mexico. Prices of BOPET Films are further expected to increase towards the 4th quarter as prices of Crude Oil are expected to increase as Saudi Arabia and Russia limit the production of Crude Oil.
APAC
Prices of BOPET Film in the Asian market over increased marginally by approximately 1% despite prices of as prices of feedstock PET declining by almost 2%. Demand for BOPET Film from the downstream packaging sector strengthened as the Mid Autumn Festival improved purchasing sentiments amongst the local populace, which consequently added pressure to the downstream packaging industry. The increased demand with rising prices of upstream Crude Oil and moderate production levels led to a deficient market which compelled prices to show an increment. Current supplies were found to be not enough to cater the requirements of domestic demand. Furthermore, the incoming of Mid Autumn festival season increased demand in the South East Asian market, which compelled traders to increase prices of the product for exports. Moreover, declining prices of feedstock PET also added to the convenience by easing production costs because of which sellers can improve profit margins. Prices of BOPET are expected to stabilize as demand may grow weaker as improvements in the economic situation are largely marginal, which may is expected to keep the restrictive sentimements towards purchasing activities.
Europe
Prices of BOPET Films have largely remained stable in the European market despite prices of feedstock PET increasing by almost 1% in the third quarter of 2023. This was largely due to the creation of an adequate gap between current supplies and existing demand. Current production rates generated enough inventories to cater to the requirements of existing demand, which was found to be moderate as purchasing sentiments are yet to improve. As Crude Oil prices spiked by 23% in the third quarter, production costs also increased because suppliers were cautious in the procurement of inventories and avoided making bulk purchases largely to prevent an oversupplied market amidst marginal recovery of the European economy. Demand from the downstream packaging industry was also moderate as trade activities had started to take place as improvements in the supply chain system of Germany were made. However, prices are again anticipated to increase as Crude Oil prices are further expected to rise, which may cause increments in the prices of feedstock PET and add to production costs.
Middle East
Prices of BOPET Films witnessed a significant uptick of approximately 6% in the month of August, before stabilizing in the last month of the third quarter of 2022. Demand from the downstream packaging sector improved at the beginning of the third quarter of 2023, coupled with increasing prices of feedstock PET, which also increased by approximately 1% at the beginning of the first quarter of 2023. Towards the end of the third quarter, demand from the downstream industry remained constant, with ample supplies available in the market to cater to the requirements of the present demand. Moreover, the maintenance of an adequate gap between demand and supply helped the prices attain stability and prevented them from fluctuating. Fluctuations in the prices of upstream Crude Oil did not have any effect on the prices of BOPET Film in the Middle East market towards the end of the third quarter of 2023.
For the Quarter Ending June 2023
North America
The second quarter of 2023 saw a bearish market situation for the USA BOPET Film (Biaxially Oriented Polyethylene Terephthalate Film). Over the course of three months, the product prices experienced consecutive declines of 0.5%, 2%, and 3%, respectively. The primary reason behind this trend was the decreased cost of raw material PET (Polyethylene Terephthalate), which witnessed reductions of approximately 2.5%, 7.0%, and 9.0%, respectively, in the US market. The decrease in demand from the downstream packaging industry played a significant role in this market downturn, as the industry faced challenges related to labor shortages and the banking crises following the failure of several major banks. The disruption in financing and lending options for packaging projects further exacerbated the situation. While supply improved during the quarter, high inventories in the USA market and low overseas demand contributed to the declining price under global inflationary pressure. At the end of the quarter, the price of BOPET Film 13 µDDP Los Angeles (USA) hovered around USD 1943/MT.
APAC
During the second quarter of 2023, the Asian BOPET Film market experienced mixed sentiment. In India, the price of BOPET Film increased in the initial two months by 3.5% and 5%, respectively, driven by heightened demand from the downstream food and beverage industry. Fortunately, the supply of products in the country remained stable, and no new supply chain barriers were observed during this period. However, the last month of the quarter saw a decrease in product price by approximately 1.5% due to a significant drop in feedstock PET prices (around 6.3%). This decrease occurred alongside high inventories of BOPET Film and a decline in product demand, influenced by inflationary pressures. Conversely, in the Chinese market, the price of BOPET Film increased in the first month, following a 4.5% rise in feedstock PET prices. However, during the last two months of the quarter, the product price decreased by approximately 1.8% and 5%, respectively, aligned with a decline in PET prices by around 3.7% and 7.0%. The increasing demand for feedstock PET played a pivotal role in driving the market during this period.
Europe
The European BOPET Film market experienced a bearish trend during the last two months of the second quarter of 2023. Product prices declined by 0.5% and 2% in May and June, respectively, largely due to feedstock PET prices decreasing by around 0.7% and 4%. These declines were influenced by the global market's decrease in product prices, impacting the European region as well. The slower economy during this period resulted in reduced demand from the downstream food and beverage industry. Consumer focus on essential products and the impact of increased interest rates and inflation further hampered the demand for BOPET Film. However, in the first month of the quarter, prices experienced a slight increase of around 0.5% as feedstock PET prices rose by approximately 1%. The increased demand for feedstock PET primarily drove the market. Thus, after an initial increase and subsequent decreases in the following two months, the price of BOPET Film 13 µ (Spot) FD Hamburg (Germany) was hovering around USD 2054/MT.
Middle East
The second quarter of 2023 brought fluctuating prices to the market of Saudi Arabian BOPET Film (Biaxially Oriented Polyethylene Terephthalate Film). In April 2023, the price of BOPET Film increased due to a 2% rise in feedstock PET (Polyethylene Terephthalate) prices and high demand from the downstream food and beverage industry, driven by summer seasonal demand. However, in May and June, prices experienced declines of around 1.6% and 4.5%, respectively, primarily due to decreased feedstock PET costs (around 2% and 2.7%, respectively). Moreover, the upstream Crude Oil prices decreased by approximately 9% and 3% during this period. Global price declines also impacted the Middle East BOPET Film prices during this period. Additionally, oil prices came under pressure in June, influenced by concerns over a global economic slowdown and further interest rate hikes in the United States and Europe. By the end of the quarter, the price of BOPET Film in the Saudi Arabian market was hovering around USD 1930 per metric ton.
For the Quarter Ending March 2023
North America
During Q1 2023, the American market witnessed a 4.7% decrease in the price of Biaxially-Oriented Polyethylene Terephthalate (BOPET Film) in the first month, followed by a decline of around 0.5% in the second and third months. This was attributed to the 7.6%, 1.5%, and 1.3% fall in the price of feedstock Polyethylene terephthalate (PET) across the country. While demand from the downstream packaging industry was stable, overseas demand declined due to the abundant availability of the product in the global market. Additionally, the US bank crisis impacted the product's price by reducing liquidity in the financial markets, making it difficult for buyers to obtain financing, resulting in a decrease in demand and price.
APAC
During the first two months of Q1 2023, the price of BOPET Film in the Asian market rose in China by approximately 8% and 4% due to the price increase of feedstock PET by around 8% and 2.5%. However, in the last month of Q1 2023, the commodity price declined by approximately 2.7% following the decrease in the price of feedstock PET, which fell by around 4% in the Chinese market. The demand for downstream packaging products was high in the first two months of Q1 due to the Chinese Lunar New Year festivities. The demand for packaging materials increased during the Chinese Lunar New Year for several reasons. The festive season involves extensive gift-giving, and these gifts are usually packed in boxes, BOPET Films, or other types of packaging materials, leading to increased demand for such products.
Europe
The price of BOPET Film in Europe during Q1 2023 was driven downwards by the reduced price of feedstock PET. Despite the high supply of the product in Germany and the United Kingdom, demand from the downstream packaging industry was moderate. The primary reason behind the declining price trend was the reduced global market prices for the product. Moreover, in Europe, most of the BOPET Film is imported from Asia, which also contributed to the lower prices. A labor strike at the Port of Hamburg, Germany, which is the busiest port in the country and second busiest in Europe, also affected the supply and demand of BOPET Film in the European market. However, there was ample availability of the product in Europe, which further supported the high supply.
For the Quarter Ending December 2022
North America
BOPET (Biaxially-Oriented Polyethylene Terephthalate) Film, one of the most traded packaging materials, has seen significant price drops since the start of the fourth quarter in the USA packaging material market. The falling feedstock cost and dimming market expectations are the key causes of the declining trend. Prices for PET (Polyethylene Terephthalate) Resin, a feedstock for BOPET Film, a material used to make a variety of packaging products, also dropped. During the first half, as market participants watched Hurricane Ian's effects in Florida, which was far from the Texas-Louisiana Gulf Coast's refining, trading activity slowed. In addition, the weak demand was also brought on by a sluggish economy, which highlighted the significant overhang of inventory and continued to put downward pressure on spot and contract prices.
APAC
The price of BOPET (Biaxially-Oriented Polyethylene Terephthalate) Film in the region was reduced due to the weak demand from the packaging industry. With a sales ratio of an average of 67%, sales were bearable because several downstream customers restocked only minimally. Despite the high demand for packaging materials in the first half of Q4, the impact of the coronavirus pandemic and low costs for crude oil and feedstock PET Resin considerably reduced the production cost for BOPET Film. Later, as the downstream packaging industry's demand decreased, manufacturing reported having access to bulk goods. Manufacturers were compelled to cut the price of the BOPET Films that were on the market to clear the stocks. As a result, the price was steady at USD 1093/MT Ex-Shanghai in November 2022, showcasing a weekly decline of 9.4%.
Europe
Throughout Q4 of 2022, the price of BOPET (Biaxially-Oriented Polyethylene Terephthalate) Film decreased in the Eurozone. Europe's lackluster demand for packaging film caused a decline in the BOPET Film market. According to ChemAnalyst pricing intelligence, the profit margins in the BOPET Film market have decreased by 6.2% in the European markets as a result of low manufacturing costs and condensing market attitudes from its end-use packaging department. In November, it was discovered that the cost of BOPET Film 13 microns had been negotiated at USD 2542/MT FD Hamburg. Manufacturers were hesitant to raise their profit margins, though, due to rising worldwide inflation and an unprecedented market for crude oil. As a result, Eurozone continuously displayed a gloomy market outlook in the BOPET Film market.
For the Quarter Ending September 2022
North America
BOPET (Biaxially-Oriented Polyethylene Terephthalate) Film market trend declined throughout the third quarter of 2022. As the market of feedstock PET dropped, the manufacturing cost involved in BOPET Film production reduced, which eventually caused the price of the product to plunge. Besides, the inventories were overstocked with abundant supply and poor customer buying activities. The downstream demand for BOPET Film from packaging and insulating industries also plummeted, which led to the price fall of BOPET in the domestic market. Later in the second half of Q3, due to the labor shortage, production in the USA was disrupted, but lull demand from the downstream sector kept prices downward.
APAC
The BOPET(Biaxially-Oriented Polyethylene Terephthalate) Film market in China experienced a decline throughout the third quarter in line with the low demand from the packaging sector. In the meantime, the Korean market also experienced a downward trend due to weaker feedstock Polyethylene Terephthalate prices and decreased demand. Additionally, the zero-tolerance circumstance regarding the pandemic had a detrimental impact on the Chinese economy, and the Covid restrictions weakened the market sentiments. Overall, there was a steady flow of supply into the market alongside low demand, which was the leading cause of inventory overflow, causing the subsequent decline in the price of BOPET Film.
Europe
The third quarter in Europe has been uneven, with the market declining in the first half of the period. Later, when the energy crisis spread across the market, consumer attitude toward essential products, notably BOPET (Biaxially-Oriented Polyethylene Terephthalate) Film, decreased. The second half of August also witnessed a bearish trend as customers have been reluctant to make significant purchases because of the rising gas and electricity prices on the European market. Additionally, BOPET Film manufacturers reduced their bids to sell out the available inventories as the packaging sector reduced their offtakes, which resulted in the price decline towards the end of the third quarter.
For the Quarter Ending June 2022
North America
In North America, the BOPET market increased throughout the second quarter. The feedstock Purified Terephthalic Acid has been affected by the shifting crude prices as a result of the Russia-Ukraine conflict, which has further affected the pricing of BOPET. Demand from downstream packaging, labeling, and laminating industries remained volatile in the domestic market. Additionally, low oil inventories, decreasing spare capacity, and the risk that supply growth will fall short of demand contribute to the upward trend in BOPET market prices. However, the unpredictable crude oil prices have reduced PET operating rates in the United States, resulting in a marginal increment in price due to the limited availability of inventories. Therefore, owing to these factors, manufacturers in the US are forced to increase the prices of BOPET.
APAC
BOPET Film prices were reduced throughout the Asia-Pacific region's second quarter as demand for the product remained lull in the domestic market. The resurgence of Covid in the Chinese market and volatile crude oil due to the Russia-Ukraine war, coupled with the rising price of upstream Purified Terephthalic Acid, made the downstream industries suspicious about buying at a higher cost. Thus, it was observed that the manufacturers in the downstream sector were mulling over their consumption at a high rate and were waiting for the decline in prices for BOPET. At the same time, offtakes from downstream packaging industries seemed bearish during the quarter. Industrial experts revealed that supply was more significant than demand in domestic and global markets. As a result, manufacturers were advised to operate plants optimally, foreseeing the dull market sentiments. Conclusively, the price for BOPET Film 13 µ (Spot) hovered around USD 1515/MT Ex-Shanghai, in June 2022.
Europe
In Europe, the BOPET market increased throughout the first half of Q2, 2022. This change in market value came on the back of firm crude oil prices. BOPET derived from Polyethylene Terephthalate is primarily used in the packaging, labeling, and laminating industries, and these industries were the driving forces behind this increment. Furthermore, the Russia-Ukraine War has increased the prices of its raw materials, Polyethylene Terephthalate (PET) and Purified Terephthalic Acid (PTA), in the local market. In addition, constrained supply fundamentals and rising freight costs contributed to the growing price trend. In contrast, the BOPET market slightly declined in the second half due to weak market sentiments and adequate stocking. Consumers were also observed mulling over their purchases due to the volatile market for its raw material. Thus, the demand for BOPET fluctuated throughout this quarter.
For the Quarter Ending March 2022
North America
In the USA, Biaxially Oriented Polyethylene Terephthalate (BOPET) Film market witnessed an upward trend in the first half which later stabilized in the second half, followed by a sudden regain in its trend by the quarter-end. Offtakes from downstream food, beverage & personal care sectors seemed firm, caused a hike in its price in the first half of Q1 2022. Feedstock Purified Terephthalic Acid market was also seen conspicuously high in the domestic market. In addition, the demand for BOPET stabilized later in the domestic market with ease in crude oil price, whereas in the last month of the first quarter, the market rebounded with healthy offtakes from downstream industries, causing prices for BOPET to settle at USD 2765 DDP West Coast.
Asia Pacific
In the Chinese market, discussions for BOPET Film fluctuated throughout the quarter owing to the consistent demand from downstream industries. Upstream PTA market flourished throughout the first quarter due to high demand from the downstream packaging industry along with the rising crude oil prices. In India, offtakes from downstream food, beverage & personal care segments seemed to be lifted, causing a hike in its prices throughout the Q1 of 2022. Thus, with seasonal changes hitting the Asia Pacific region, the demand for PET bottles also rose in the domestic market, causing a change in prices. Therefore, prices for BOPET in the Asia-Pacific region differed and were assessed at USD 1920/MT in China.
Europe
BOPET Film market rose in the first month of the quarter, which later sustained in the second half of Q1. This price change was attributed to the conflict between Russia-Ukraine affecting the demand from the domestic market along with hindered supply. The raw material PET derived from PTA saw fluctuations in its value with the changing energy prices. Demand from downstream packaging industries also slumped with tightening in the supply chain affecting the availability of the inventories in the domestic market. Thus, prices for BOPET in Europe dipped in the late months of the first quarter and settled at USD 2559/MT in Germany.
For the Quarter Ending December 2021
North America
Downstream food packaging and other industries kept strong consumption levels throughout the last quarter consolidating on the trend of previous quarter. Consequently, on the back of inflationary pressure Biaxially Oriented Polyethylene Terephthalate film prices rose significantly in Q4. Limited availability of PTA imports from Mexico curtailed domestic BOPET production which increased inflationary pressure on the available material and hence, market participants enjoyed strong margins. Imports from Asia also remain limited in the wake of resolutely high freight charges. BOPET prices rose incessantly and were assessed at USD 1876 per MT on FOB basis.
APAC
Biaxially Oriented Polyethylene Terephthalate (BOPET) film prices rose significantly in October on the back of high demand from the downstream sectors. Packaging and electronics sector have increased consumption in the domestic market bolstered by festive demand. Thus, BOPET price rose significantly and assessed at INR 149780/MT. BOPET prices traced downward trajectory in H2 of Q4 as the stock availability of the product improved while demand slowed down. BOPET Film prices have consequently tumbled to INR 152300 per MT in December. In China, Biaxially Oriented Polyethylene Terephthalate market followed an uptrend throughout Q4 where demand influx from food packaging industry increased the prices of BOPET. In December, BOPET price in China was assessed at USD 1893 per MT on Ex-location basis.
Europe
Biaxially Oriented Polyethylene Terephthalate film market measure significant growth where BOPET prices in Europe crossed USD 2300 per MT on FD basis. Demand from downstream food packaging and other allied industries remained strong where consumers struggled throughout the quarter to secure their material. Manufacturers also reported that rising feedstock prices have further contributed to the increased cost pressure on BOPET in the European market. Limited domestic production of PTA and unavailability of imports from Asia exacerbated the production and culminated in sluggish operating rates of BOPET and curtailing downstream supply chain.
For the Quarter Ending September 2021
North America
The market outlook of BOPET film showcased an upward trend in the North American region during the third quarter of 2021. Shut down of several plants as a repercussion of hurricane Ida led to a tight supply of upstream chemicals including Mono Ethylene Glycol (MEG), Polyethylene Terephthalate (PET), and Purified Terephthalic Acid (PTA), which resulted in increased prices of BOPET films across the region. In terms of demand, offtakes from the downstream packaging industry remained strong in this quarter.
Asia Pacific
During the 3rd quarter of 2021, the prices of BOPET film witnessed a significant rise in the Asia Pacific region. In India, a benign feedstock outlook coupled with sturdy demand from the downstream sectors has kept the fundamentals for BOPET film bullish. Besides, buzz of the commissioning of a greenfield BOPET plant by Ester Industries Limited with a capacity of around 48000 TPA in Telangana, by the middle of the next fiscal has kept the market sentiments firm in the near term. Following an uptrend, BOPET film prices escalated from USD 1812/MT to USD 1990/MT on India in Q3 2021. A key plastic film producer in China reported double-digit growth in its quarterly profit due to improved consumer demand and better operating margins in the country.
Europe
In the European region, the domestic market demonstrated an upward trajectory in the pricing trend of BOPET films during Q3. A consumer notified that increased prices of upstream PET Resin remained the key factor concerning the market in this quarter. Some BOPET producers also relied on PET supplies that were secured in June. As per market players, prices may face some drops in the next quarter. In terms of demand, gains from film producers both in Italy and Northwest Europe bolstered the overall costs.
For the Quarter Ending June 2021
North America
Prices of BOPET increased effectively during this quarter, in effect of shortage of feedstock PET in the country. Post freezing fallout in Gulf of USA, country faced severe shortage of upstream chemicals including Mono Ethylene Glycol (MEG) and Purified Terephthalic Acid (PTA), which pushed up the prices of downstream chemicals in the meantime. Demand from downstream packaging segment remained stable to firm in USA during this quarter, as the consumption improved compared to previous quarter, due to an effective economic recovery. Therefore, on the back of upstream chemicals, price of BOPET showcased improvement during Q2 2021 across North America region.
Asia
Due to mixed market sentiments in Asia, prices of BOPET varied country over country during this quarter. In the Indian market, prices of BOPET, which were continuously gaining momentum in the previous quarter, declined in the month of May and June. The decline was bolstered by reduced offtakes from downstream packaging sector, amid the decline in demand following the second wave of pandemic India. Thus, BOPET prices finally reached USD 1790/MT during last week of June. While in China, prices of feedstock PET soared during this timeframe, due to fair improvement in economic activities.
Europe
European market showcased firm offtakes from downstream packaging sector, bolstered by recovering economic activities in several European countries. Strong demand amid inconsistent supply activities for feedstock PET, brought firmness in the prices of PET across Europe, which ultimately pushed up the prices of BOPET in the country. However, feedstock PET prices lost momentum by the end of the final week of June, due to increase in the stock availability following the resumption in upstream plant operations and improved logistics across Europe.
For the Quarter Ending March 2021
North America
North American food packaging sector showcased high demand amid shortage of feedstock PET to produce BOPET during Q1 2021. Winter storm across US Gulf disrupted the production activity across the region and reduced the overall petroleum output of North America, which thus affected the availability of raw material to produce feedstock PET. Hence the prices of PET rose by around 5% to 6% quarter-over-quarter, which forced the prices of BOPET to rise affectively during March end. In addition, apart from curtailed domestic production, imports from Mexico also remained low due to the PET shortage in the country.
Asia
Market fundamental of BOPET in Asia remained rich as the demand for plastic film from domestic food industry in several countries maintained its sturdiness. In addition, the lower inventory levels of feedstock PET during February provided a further push in prices across the region. Thus, BOPET prices reached USD 1764.31 per MT (March 2021), rose from USD 1533.11 per MT (January 2021) in Indian market. Meanwhile, Indian BOPET major “Uflex” announced expansion of its BOPET plant from 18 KTPA to 22 KTPA.
Europe
Europe faced shortage of feedstock PET amidst stable demand from domestic packaging sector. Domestic output for feedstock PET remained lower than the desired level and imports from USA were halted by the freezing fallout across the region. On the other side, supply chain activity between Asia and Europe, witnessed expensive trade due to congestion challenged and high freight rates amid extreme shortage of containers, which provided a further upward push in the prices of BOPET.
For the Quarter Ending December 2020
North America
During Q4 2020, the packaging sector in North America remained dull specially during October and November. Major reason behind the fall was disrupted production due to multiple hurricanes across the region. Later in December, the demand for BOPET FILM improved from the packaging sector but the supply of raw material remained short that supported the prices of BOPET FILM across the region. Leading packaging film supplier, Phenix Speciality Films announced expansion drive in Indiana USA. Furthermore, Polyplex announced to set up a new BOPET FILM plant adjacent to its installed Alabama plant of capacity 50 KTPA to increase the overall BOPET FILM film production of the region.
Asia
Heading towards post-COVID recovery, packaging sector significantly improved in Asia and the demand for BOPET FILM increased in most of the Asian countries. Although the demand was stable in Q3 but experienced a sudden boost in Q4 due to ease in COVID 19 restrictions. Meanwhile the raw materials which remained tight forced prices to rise. In India, Ex-Depot price of BOPET FILM Film price rose from USD 1570/tonne in October 2020 to USD 1720/tonne in December. In October, Uflex announced to increase its BOPET FILM prices by 10% in India due to shortage of raw materials.
Europe
The European packaging sector remained low initially during Q4 2020 as COVID-19 restrictions lowered the demand of BOPET FILM from multiple sectors. Later in December, demand showed improvement and shortage of feedstock supported the prices of BOPET FILM across the region. While overall market slowdown continued to impact the overall BOPET FILM sales, Uflex found the opportunity to launch a new specially formulated film of BOPET FILM having metal texture in European market.
