April 30, 2024 10:15 am
According to the periodic survey conducted by Wood Mackenzie on behalf of the association Flexible Packaging Europein the first three monthsi of the year i prices of almost all flexible packaging materials have registered slight increases compared to the end of 2023.
The cause is largely attributed to the difficulties of refueling of resin and film related to maritime transport in Red Seasubject to attacks by Houthi rebels.
In detail (see graph below), the polyethylene continued the upward trend already seen in the second half of 2023, with increases of +2.3% for high density polyethylene (HDPE) and +4.1% for the low density type (LDPE).
The movie in bi-oriented polypropylene (BOPP) of 20 microns recorded an increase of +12% in the quarter, returning to the levels of the second quarter of last year, while that of polyamide (BOPA) from 15 microns saw a smaller increase (+2%) and the film PET from 12 micron increased by +4%, approaching the price it had at the beginning of 2023. Among the materials examined, only the single-coated glossy paper from 60 gsm has remained stable, without undergoing changes since the last quarter of last year.
The prices are however still under at the levels observed atstart of the 2023, especially for aluminum foil (-16%), and 60gsm single-coated glossy paper (-24%). However, when compared to the Q1 2020 baseline, they are higher, with increases ranging from +27% for BOPP film to +57% for aluminum foil.
“Purchasing prices in Europe for flexible packaging materials are mostly increased In the 2024 – he summarizes Santiago Castroanalyst of Wood Mackenzie -. This happened for example for BOPET, BOPA and BOPP, which recorded the most significant increases”. “The purchase prices of paper have remained unchanged, but increases are expected in the second quarter, due to increases in the cost of cellulose pulp – he adds -. The aluminium sheet had additional price drops due to reductions in processing costs. Although demand has increased overall for all substrates, this is an improvement mainly attributable to restocking of stocks. The question from the end users remains weakalthough there are signs of improvement.”
“There is major uncertainty in the market compared to what there was at the end of last year – he underlines Guido Aufdemkamp, executive director of FPE (pictured) -. Rising tensions in the Middle East in general and the constant threat to shipping in the Red Sea have caused serious supply chain difficulties. The war in Ukraine also continues to impact both the supply and broader European demand for packaging materials and packaged products.”
According to Aufdemkamp it is unlikely that these tensions Yes loosen up in the next future. “However, it appears that the strong inventory relief has come to an end in most segments and has slowly begun restocking of stocks at a more normal level – he concludes -. This factor, combined with a cautious recovery in demandwith the stabilization of prices and inflation, could lead to a modest growth of the flexible packaging materials market in Europe inlast part of the year“.
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