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.
China
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
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.
