Although prices for flexible packaging materials have fallen again after the recent highs, they remain well above the 2020 level, the European industry association Flexible Packaging Europe (FPE) has now announced.
After the first signs of a cooling of prices for flexible packaging materials, which were observed at the end of 2022 a decline in all materials in the first quarter of 2023, with only aluminium foil increasing further due to higher processing costs. Only 60 g/m² one-side coated paper remained stable at 17 per cent compared to Q4 2020. Other materials such as 15-micron BOPA film (147%), 12-micron PET film (145%) and 20-micron BOPP film (140%) have seen slight price decreases of up to 12 per cent recently and remain significantly above the price level of Q4 2020, according to the recently published Flexible Packaging Europe (FPE) published figures.
Both LDPE and HDPE have recently recorded significantly lower price reductions, both at -3 per cent. They now stand at 161 per cent (LDPE) and 144 per cent (HDPE) and are therefore significantly above the 2020 level, after they stood at 201 per cent and 182 per cent respectively in the middle of last year.
„Prices for BOPP, BOPET and BOPA films fell by around ten per cent each quarter. Converters“ order volumes were lower than usual as they continued to reduce high inventories, a process slowed by weak consumer demand. Prices for one-side coated paper remained stable, ending a streak of seven consecutive quarterly price increases. Falling pulp and energy costs combined with weak demand could well lead to price reductions in the second quarter. Prices for film rose slightly in the first quarter, mainly due to higher processing costs."
David Buckby, Senior Analyst at Wood Mackenzie
According to Guido Aufdemkamp, Executive Director of FPE, the figures reflect some good news, but he also adds a note of caution: „While most prices for flexible packaging materials have fallen slightly, they are still at a very high level compared to the pre-Covid market. This The decline is partly due to the reduction in inventories along the entire value chain and weaker end consumer demand. If inflation remains high, consumers are likely to remain cautious, and although many economists expect the inflation rate to fall by the end of 2023, there is a great deal of uncertainty in all sectors of the economy.
The good news is that energy costs are falling, which may have a positive impact on the general price level. These various factors are pulling the market for flexible packaging materials in different directions, so we will have to wait and see how the various end markets develop over the course of the year.“
SourceFPE : FPE
