For the Quarter Ending September 2024
North America
In the third quarter of 2024, the North American BOPET Film market experienced a significant decline in prices, with the USA facing the most substantial changes. Several factors contributed to this downward trend, including an oversupply in the market and reduced demand from downstream industries. Additionally, logistical challenges stemming from weather disruptions and increased freight costs further exacerbated the situation. The market was also influenced by a decrease in production costs, weak demand from the packaging sector, and a cautious approach by manufacturers aiming to maintain price stability.
The pricing data reveals a decrease of 7% compared to the same quarter last year and a 3% drop from the previous quarter in 2024, reflecting ongoing bearish market sentiment. Furthermore, the comparison between the first and second halves of the quarter indicated a further decline of 1% in prices. These trends highlight the challenges faced by industry stakeholders as they navigate fluctuating demand and supply conditions.
As of the latest quarter-ending, the price for BOPET Film in the USA stood at USD 2,055/MT DDP Los Angeles. This figure underscores a consistently negative pricing environment characterized by various factors leading to a sustained decrease in market prices. Overall, the combination of oversupply, reduced demand, and logistical issues has created a challenging landscape for BOPET Film pricing in North America.
APAC
In Q3 2024, the APAC region witnessed a significant decline in BOPET Film prices, reflecting a challenging market environment. Several factors influenced this downturn, including oversupply issues, weakened demand from downstream industries, and logistical disruptions. These challenges have exerted downward pressure on prices, creating a negative pricing sentiment across the region. China, experiencing the most substantial price changes, has been particularly impacted by these market dynamics. The quarter saw a -15% decrease compared to the same period last year and a -4% decline from the previous quarter. Additionally, a -5% price difference between the first and second half of the quarter further emphasizes the downward trend in pricing. The latest quarter-ending price of USD 1009/MT for BOPET Film 13 µ (Spot) Ex-Shanghai in China underscores the persistent decrease in prices. This data highlights a bearish trend in the BOPET Film market, with prices steadily declining throughout Q3 2024.
Europe
Throughout Q3 2024, the European BOPET Film market experienced a steady decline in prices, with Germany showing the most significant price fluctuations. This decrease was influenced by several key factors, including a shift toward lower demand from downstream industries, which adversely affected overall consumption of BOPET film. Additionally, logistical challenges and rising freight costs disrupted the supply chain, further limiting the availability of BOPET film in the market. The rising production costs, particularly due to increased crude oil prices, added further downward pressure on prices. In Germany, the quarter demonstrated a clear negative trend in BOPET film pricing. Overall, prices showed a 2% decrease compared to the same quarter last year and experienced a 2% decline from the previous quarter in 2024. During the first half of the quarter, prices fell by 1% compared to the second half, highlighting the ongoing downward trend. By the end of the quarter, the price for BOPET Film 13 µ (Spot) FD Hamburg in Germany was recorded at USD 2059/MT. This figure reflects the prevailing sentiment of price reduction within the market.
MEA
In Q3 2024, the MEA region experienced a decline in BOPET Film pricing, driven by several key factors. An oversupply coupled with weakening demand significantly contributed to lower prices. Manufacturers ramped up production, resulting in excess inventory, while the packaging sector faced reduced demand due to macroeconomic challenges and inflationary pressures. Additionally, the devaluation of feedstock PET lowered production costs, allowing suppliers to reduce prices to stay competitive amidst sluggish demand. The slower growth of the PET market in the Middle East and Africa further diminished the demand for BOPET films used in packaging, reinforcing the bearish sentiment in the region. Saudi Arabia, which experienced the most notable price changes, reflected a consistent downward pricing environment. Seasonal factors and market trends contributed to the observed price fluctuations. Compared to the same quarter last year, prices saw a decrease of 2%, indicating an ongoing downward trend. Furthermore, a quarter-on-quarter change of 1% showed a brief increase before prices ultimately fell by 2% between the first and second halves of the quarter. By the end of the quarter, the price for BOPET Film Grade Ex-Riyadh in Saudi Arabia was recorded at USD 1915/MT. This figure underscores the prevailing negative sentiment within the market.
For the Quarter Ending June 2024
North America
The second quarter of 2024 has seen a notable increase in BOPET film prices in the North American region. This quarter has been characterized by a myriad of factors influencing market dynamics, resulting in heightened pricing for BOPET films.
Key drivers of this price escalation include increasing demand fueled by robust manufacturing activities and disruptions in supply channels. The rising prices of feedstock PET have significantly contributed to the overall increase in production costs, thereby influencing BOPET film prices during April 2024. Moreover, geopolitical tensions and logistical issues, such as port congestion and severe weather conditions, have exacerbated supply constraints, further driving up costs during June 2024. Additionally,
Focusing on the USA, which experienced the most significant price changes, the overall trend has been bullish. Seasonality played a crucial role, particularly with the summer driving season contributing to an uptick in demand for packaging materials. This increased demand, coupled with supply bottlenecks, led to a 9% year-over-year increase in BOPET film prices and a 4% rise from the previous quarter. Conclusively, the pricing environment for BOPET film has been positive, with the quarter ending for USD 2103/MT DDP Los Angeles in the USA.
APAC
During Q2 2024, the BOPET film market in the APAC region experienced a noticeable downturn, driven by several pivotal factors. However, in April 2024, the prices have admitted a hike on the back of tight spot flows in the domestic market ahead of the Tomb-Sweeping Day holiday. The rise in prices was attributed to a sudden shift in supply and demand dynamics due to a rise in feedstock PET which certainly increased BOPET production costs. Following that, the overarching sentiment was characterized by decreasing prices, influenced primarily by an oversupply of feedstock PET and subdued demand from downstream industries such as packaging and electronics during May 2024. The reduction in upstream crude oil prices alleviated production costs, which, alongside high inventory levels, pressured manufacturers to lower their prices to remain competitive. Seasonality played a significant role, with the typically robust demand during Q2 failing to materialize fully, exacerbated by high inventory carryovers from previous quarters. Comparing the previous quarter in 2024 to Q2, the -2% change further illustrated the entrenched negative pricing environment. The latest quarter-ending price for BOPET Film 13 µ (Spot) Ex-Shanghai in China stood at USD 1098/MT, cementing the prevailing negative pricing trend.
Europe
The second quarter of 2024 for the BOPET Film market in Europe has been characterized by a stable pricing environment, from bearishness toward bullishness which balanced out an overall sentiment. The second half of the quarter saw the market grappling with increased freight costs and logistical disruptions, which were counterbalanced by lower feedstock costs for PET during May 2024, the primary raw material. Despite these opposing forces, the market dynamics maintained equilibrium due to a balanced supply-demand scenario. The consistent pace of downstream demand, particularly from the packaging and beverage bottling industries, helped stabilize prices. Seasonal factors, such as the peak bottling season, typically induce price volatility, however, this year, robust inventories and steady procurement patterns tempered significant fluctuations. Focusing on Germany, which experienced the most notable price variations within the region, the market exhibited a harmonious balance amidst these influences. Interestingly, the price change from the same quarter last year recorded a modest 3% increase, reflecting slight inflationary pressures. The quarter concluded with a price of USD 2059/MT for BOPET Film 13 µ (Spot) FD Hamburg, reinforcing the stable market environment.
MEA
The second quarter of 2024 has been particularly challenging for the BOPET film market in the MEA region which showed a mixed trend. The impact of the Red Sea crisis and attacks by Houthi rebels significantly affected shipping routes, leading to delays and increased freight charges during April 2024. Concurrently, the global market witnessed a slump in PET feedstock prices, which directly influenced the BOPET film production costs, thereby exerting downward pressure on market prices during May 2024. Additionally, the seasonality factor played a role, as the demand from downstream sectors traditionally diminishes post-festival seasons, leading to lower procurement rates and subsequently affecting BOPET pricing. In Saudi Arabia, the market experienced pronounced price volatility, with the quarter concluding with the price of BOPET Film Grade Ex-Riyadh at USD 1983/MT, underscoring internal supply-demand imbalances. However, despite the low demand from the downstream plastic and packaging market, the BOPET prices in June have slightly rebounded amidst high freight charges and shipping delays.
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.
