GUILSBOROUGH, ENGLAND (Jan. 4, 1 p.m. ET) — The price of biaxially oriented PET film has fallen to 2.20-2.35 euros per pound, with spot prices as low as 1.50 euros, as demand across the globe has weakened, according to PCI Films Consulting Ltd. managing director Simon King.
According to King, demand has dropped in several countries, including India, which has outlawed the use of BOPET film laminate in chewing tobacco. The lack of demand is also due to the United Kingdom government halving subsidies for domestic electricity generation, slashing the potential payback for PV cells, he says.
On the supply side, new capacity has come on stream in India and Egypt, and many European firms are now buying from producers outside the region, says King.
Looking forward, King says further falls in prices are unlikely as manufacturing BOPET film has to remain attractive to producers.
“Prices are therefore near the bottom but perhaps not quite there yet,” he says. “What appears clear is that the commercial landscape is getting back to ‘normal' and it has become a buyer's market again.”