UK packaging films trade association PAFA has warned of further raw material increases in the PET market. Strong Asian demand for polyester is starting to add further inflationary pressure to prices in Europe, the association states.
PAFA CEO Barry Turner says the effect of market recovery, as global demand has picked up around the world during the last 12 months, continues to create sharp upward price pressures as suppliers juggle demand and supply for all raw materials.
“The market for thin film polyester has already seen a more than doubling in price this year influenced by strong demand for film applications in other sectors and, although PET feedstock prices have risen during the year, we are now seeing signs of acceleration in prices of feedstock prices as well.”
“It is difficult to see the situation easing in the short term,” says Mr Turner. “While demand for this product continues to rise, significant new capacity is currently not forecast to come on stream until 2011/12 - so there is a supply/demand imbalance which is currently driving prices higher.”
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