BOPET film prices stabilize in Europe

PCI Films said the price has remained unchanged for three consecutive months, and future price movements in either direction are unlikely to be significant due to three criteria: already squeezed film producer margins, excess film extrusion capacity and stable raw material costs.

These criteria are detailed in the latest edition of PCI Films’ European Monthly BOPET Film Pricing Series, which reports on industry average prices obtained from interviews with buyers and sellers of 12 micron BOPET film across Europe. 

European film producer margins have been weakened in 2013 due to the absorption of higher input costs, mainly because they have been unable to pass these increased costs onto customers. In addition film producers have been chasing volume to improve capacity utilization at a time when European BOPET film demand remains at best stable. Both factors are putting BOPET film producers under significant financial strain, the report concludes.

Speaking of the problems facing the West European BOPET film extrusion industry, PCI Films managing director Simon King said: ‘European producers of 12-micron BOPET films will be glad to see prices finally stabilize but they still face strong competition from Turkish, Middle Eastern and Asian producers. 

‘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.’