logo

European PET film prices stabilize after two-year decline

By: EUROPEAN PLASTICS NEWS

July 24, 2013

After two years of steady decline, the European price of 12-micron biaxially oriented polyester (BOPET) film is finally stabilizing, according to PCI Films Consulting Ltd.

Prices may fall slightly in the third quarter of 2013 but "future price movements in either direction are not expected to be significant" because of squeezed film producer margins, stable raw material costs and excess extrusion capacity, according to the Guilsborough, England-based consultancy.

However, producers will continue to suffer financial stress over the coming months.

"European producers… will be glad to see prices finally stabilize but they still face strong competition from Turkish, Middle Eastern and Asian producers," managing director Simon King said in a statement. "European buyers of BOPET film now source the majority of their commodity films from lower-cost suppliers outside of Europe so if the European industry is to survive, successful strategies to develop and supply added-value products will be critical."

In addition, European producers have seen margins weakened by higher input costs, which they have not been able to pass on to customers.