Flexible Packaging / Latest Headlines

Polyester film pricing no longer rising

Two major factors influence commodity bi-oriented polyester (BOPET) film prices – the cost of raw materials (PTA and MEG) and supply/demand dynamics in the global BOPET film industry. PCI Films Consulting’s Quarterly Business Reports have been documenting film prices for almost 20 years and find that currently supply/demand dynamics rule the market.

After the supply shortages and rapid increases in commodity BOPET film prices in 2010/11, US buyers are relieved to see a recent return to a degree of ‘normality’. Prices for polyester raw materials are hardly moving and with US demand for flexible packaging only now returning to historic levels; it is the increasing volume of commodity BOPET film which is being made available that is driving current prices. New thin film extrusion capacity has been commissioned by Flex Americas S.A. de C.V. in Mexico, and there are two new thin film lines to be added in the US by the end of the year. As a result, 50% more volume should be available to film buyers in 2013, which should increase competition and help keep film costs more stable - good news for buyers of film.

In fact there has been virtually no upward price movement in the US over the past three quarters in any of the five flexible packaging substrate materials monitored by leading UK-based films experts, PCI Films Consulting. Their subscription-based global quarterly price series includes reviews of 80 gauge BOPP film, 48 gauge BOPET film, 60 gauge BOPA film, 28 gauge aluminum foil and 60gsm coated papers.

Trends over the past year to eighteen months have also been influenced by buyers at both the converter and packer level purchasing only what they immediately require in order to cut costs and reduce working capital.

The quarterly price series editor, Paul Gaster notes, “In a number of cases, buyers of film were caught out by the rapid rise in prices of BOPET film because they were monitoring raw material costs i.e. PTA and MEG, which hadn’t moved. The recent spike in film prices was purely supply/demand driven and therefore our series is likely to be more timely at picking up and understanding these key drivers”.
 

Did you enjoy this article? Click here to subscribe to Food and Beverage Packaging

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Rochester Mills Production Brewery tour- January 2015

Take a look inside the Rochester Mills Production Brewery in Auburn Hills, MI. The facility brews and cans five beer varieties from the Rochester Mills Beer Company. There the beer is made and packaged in 16-ounce cans, bound together in 4-packs and palletized for distribution. We went on a tour of the facility and got an in depth look at the total process.

Posted: January 30, 2015

Food and Beverage Packaging

FBP May 2015 Cover

2015 May

Check out the May 2015 issue of Food & Beverage Packaging, featuring a look at flexible packaging in the industry, lightweight product packaging as sustainable packaging, and much more!

Table Of Contents Subscribe

Coffee Segments

Which coffee segment will be impacted the most by coffee bean price increases?
View Results Poll Archive

The Food and Beverage Packaging Store

M:\General Shared\__AEC Store Katie Z\AEC Store\Images\FBP\modified-atmosphere.gif
Modified Atmosphere and Active Packaging Technologies

Many factors are relevant in making the proper choice of food packaging material, including those related to shelf life and biodegradability.

More Products

The Packaging Guide

The Packaging Guide 2015 Cover

Food and Beverage Packaging's Packaging Guide Directory provides a list of suppliers of food and beveraeg packaging solutions. Visit the brand new online directory at www.thepackaginguide.com.

STAY CONNECTED

 Facebook iconTwitter iconYoutube icon LinkedIn icong+icon

Clear Seas Research

CS-OflRGBhomepage.jpgWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.