Insufficient cost support & sluggish demand-BOPET film manufacturers struggling to hold on

Recently, the BOPET (biaxially oriented polyester film) market has shown intensified supply-demand imbalances and persistently low prices, putting the entire industry under profit pressure.

From January to June 2025, the average market price for 12μfilm in East China was 7,506yuan/mt, down 4.87% year-on-year and 5.81% from the beginning of the year, hitting a historic low since 2020. Prices in Q1 2025 initially rose but later fell: climbing to 7,800yuan/mt in January due to pre-holiday restocking, then dropping to 7,100–7,200yuan/mt by late April, setting a new low for the year.

Weak raw material costs and sluggish downstream demand pressured the BOPET market downward.

As supply of PTA and MEG gradually increased, while downstream polyester plants operating rates accelerated their decline, expectations of production cuts grew stronger. Anticipated weaker supply-demand fundamentals for polyester raw materials kept prices subdued.

PET fiber chip prices fell more sharply amid surging output, with processing margins compressing to a decade-low in May 2025. PET fiber chip prices continued to weaken amid soft raw material forecasts.

Despite largely stable offer from film producers, actual transaction prices declined quietly. Some major manufacturers have cut prices to secure orders, with individual offer dipping to around 7,000yuan/mt. Actual transaction volume remain to be seen.

Demand for standard packaging film softened amid consumer downgrading, resulting in persistently sluggish market activity. Growing inventory pressure has approached critical levels for producers. With film plant inventories continuing to rise, further price cuts for promotions cannot be ruled out.

Industry processing margins partially recovered under self-discipline initiatives following significant losses from 2022–2024, but overall profitability remains weak. If film producers prioritize sales volume over prices to alleviate inventory pressure, processing margins may compress again.

Looking ahead, demand for high-end applications like new energy and optical films continues to grow. However, cautious procurement from end-use sectors (packaging, electronics, etc.) has limited transactions to small essential orders, with some enterprises facing inventory pressure. In the short term, insufficient cost support coupled with tepid demand suggests BOPET prices will likely remain weak.