The US BOPET prices witnessed a period of price stability during the week ending January 17, 2025. While the market witnessed some resurgence in activity as the month progressed, the overall impact was mitigated by averted International Longshoremen's Association (ILA) strike which somewhat balanced out the BOPET market dynamics. Moreover, stable feedstock PET prices and weak consumer sentiment due to seasonal packaging demand patterns resulted in a period of relatively stable prices for BOPET in the US market.

Key Takeaways:

• Adequate inventory levels and a seasonal lull in the packaging sector offset increased demand.
• Consistent feedstock PET prices limited upward price pressure.
• Economic headwinds and declining consumer confidence curbed demand for packaged goods.

Negotiations for BOPET prices in the USA largely resulted in another rollover during January 2025. Despite attempts to raise prices for high-quality grades, underlying demand remains weak and insufficient.

As per ChemAnalyst, the BOPET prices in the USA are expected to sustain a downward trend in the upcoming weeks amid an anticipated decrease in demand from the downstream packaging sector. Moreover, inventories will be optimized following lower market sentiments.

Currently, the initial period leading up to the potential strike by the International Longshoremen's Association (ILA) saw heightened market activity. Anticipating disruptions in shipping operations, buyers proactively increased inventory levels, particularly in polymer markets including BOPET. This pre-emptive stockpiling aimed to mitigate potential supply chain bottlenecks and ensure uninterrupted production.

However, the averted strike on January 15th led to a swift normalization of market activity for BOPET. With the immediate threat of supply chain disruptions removed, buyers focused on adjusting their inventory levels back to more typical operating levels. This shift in focus, coupled with the absence of significant disruptions, contributed to a period of subdued trading activity.

The stability in BOPET prices was further supported by a relatively balanced supply and demand dynamic. Downstream buyers, having stocked up before the Christmas and New Year holidays, entered the period with ample inventories. This reduced the immediate pressure to replenish stocks and contributed to a more relaxed buying environment.

The absence of significant price fluctuations in PET feedstock prices played a crucial role in maintaining price stability in the BOPET market. Consistent feedstock costs minimized potential cost pressures on manufacturers, allowing them to maintain their current price levels.

While rising freight charges could have exerted upward pressure on import costs for BOPET, this impact was largely offset by the availability of abundant inventories in exporting regions. This surplus supply helped to moderate the impact of higher shipping costs on the overall cost structure.