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.
