Supply Chain Issues Lead Frequent Price Fluctuations in the US BOPET Film Market
Supply Chain Issues Lead Frequent Price Fluctuations in the US BOPET Film Market

Supply Chain Issues Lead Frequent Price Fluctuations in the US BOPET Film Market

  • 02-Jan-2024 5:38 PM
  • Journalist: Patricia Jose Perez

Prices of BOPET Film have witnessed an inclination of approximately 3% in the US market during the second week of December 2023, which later (during the second half of the month) depreciated by around 2% amidst the moderate downstream demand from the packaging industry.

The reason behind the sudden fluctuations during the following weeks is largely attributed to the limited inventories of BOPET Film in circulation amidst the increased demand from the downstream packaging industry which displayed a positive sentiment on the back of the festive season.

Disruptions in the supply chain system largely prevailed with major parts of the United States experiencing severe weather conditions which made transportation of inventories of BOPET Film challenging, which consequently increased lead times. Demand for BOPET Film in the downstream packaging sector was recorded to be high as purchasing sentiments of the local populace gradually improved on the back of positive purchasing sentiments owing to the festive season. This undersupplied market, which was prevalent during the second week of December 2023, consequently prompted a price increment of BOPET Film.

However, from the first week to the fourth week of December, prices of BOPET Film have depreciated by an overall 4.2% due to slow demand from the bottle industry as the gradual improvements being made in the supply chain system eased transportation of the material. With the progressing winter season and the termination of the festive season, the downstream packaging sector experienced a dullness in demand. Abundant supplies of feedstock PET also decreased the prices of BOPET Film as production rates remained largely unchanged.

Current economic condition across the United States remained largely unchanged with inflation rates being witnessed at 2.9% in November and remaining stagnant in December 2023, with no changes being observed in December according to the FRED. Hikes in interest rates are also not expected until the end of January 2024, which further maintained the positive purchasing sentiments across the United States. Similarly, major retail chains across the United States such as Best Buy and Walmart continued to offer discounts at stores to further improve positive purchasing sentiments. 

Prices of BOPET Film are likely to witness an appreciation as prices of upstream Crude Oil again witness a bullish market situation as the effect of the restrictions on exports of Crude Oil by Russia and Saudi Arabia takes hold. This is further expected to increase prices of the feedstock PET and consequently, BOPET Film as production costs increase.

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