Quarterly Update on Global BOPET FILM (Biaxially oriented Polyethylene Terephthalate) Market
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
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.
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.
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.
