Weak demand for PET overcapacity lowers the growth rate of blow molding packaging
At the annual blow molding conference in North America, two resin analysts analyzed the reasons for the relatively low growth level of blow molding packaging.
PET analyst John Maddox said that over the past few years, overcapacity and relatively weak demand have meant that North American PET suppliers have lost a lot of profits and they cannot significantly reduce prices.
As the president of Strategic Business Analysis, Maddox pointed out that PET suppliers in North America have been integrated, but the overall production capacity of the industry is still increasing, 'just in a few years, our manufacturers have dropped from 8 to 5, and now there are only 4 independent producers in North America.
'He said at the blow molding branch hosted by the American Institute of Plastic Engineers.
He stressed that overcapacity, coupled with PET imports, the situation is worrying.
The strategy of PET wide mouth bottle resin suppliers seems to be to squeeze out imported materials, better than their own domestic competition.
He said that the industry is eager to close some old factories.
'But in the next few years, the environment will become very bad unless you are a PET buyer. 'He said.
Maddox also pointed out that anti-dumping cases have made PET imports more difficult.
'Despite this, the US imports of PET materials from abroad have set a record high. 'He said.
In terms of application fields, PET has a good demand in carbonated beverages and mineral water markets, and has a flat performance in milk and fruit juice markets. The demand for PET in wine packaging has not increased much.
The food industry provides a good opportunity. Through PET packaging, the industry can maintain innovation, cope with hot filling problems and improve barrier technology.
Maddox said that areas where demand for PET has increased include amorphous thermoformed PET, film and carpet fibers.
'Many PET bottle Packaging Resins will also enter these applications. 'He said.
But overall, Maddox is frustrated by the sluggish growth of PET demand because it is an ideal packaging material.
The problem is that 'weak economic growth' has led to a decrease in consumers' disposable income and minimized investment in innovation--
The result of producers firing employees under economic pressure.
According to Maddox's forecast, North American hard PET packaging will only grow by about 2% this year.
PET is a mature material and other materials are competing with it.
Maddox often goes to store shelves to look for first-hand research materials. He points out that soda water tends to use new slender cans.
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Sports also touch people's hearts and depict nostalgia, such as baseball tickets, menus and wedding invitations of the old generation. This kind of sports is very expensive, but it is effective.
'A pet bottle advertisement has never made me cry. 'Maddox taunted.
PET is a mature material, but blow molded packaging requires more innovation.
'Are we too busy acquiring and selling companies to ignore the innovation of PET resin itself? 'He proposed.
Of course, Maddox also highlighted some bright spots.
Graham Packaging is used for hot-filled ThermaSet PET pasta sauce jars. 'They said it could directly replace the glass jar. 'He said.
At the annual blow molding conference, ThermaSet Container won the highest award for food and general packaging, and also won the Best Popularity Award.
Earlier, this package also won the Diamond Award for packaging innovation from guodubang.
Maddox also pointed out that in the spread and promotion of nengduoyi and Hershey, PET wide-mouth bottles are now much more than peanut butter cans. Almond butter packaging also has great potential.
'If you look at Almond butter shelves, the variety of varieties is shocking, which is a great opportunity for PET.
'The demand for PET packaging for soy milk, almond milk and other lactose-free drinks is also increasing.
In terms of sports drinks, the variety of new BodyArmor has increased, and the demand for PET bottles has also increased.
Another analyst, Joel Morales, from IHS chemistry, has an in-depth study of the Polyolefin Market in North America.
He pointed out that the consumption of blow-molded PE, PP and PET has not increased much. 'The growth curve fluctuates very little. 'He said.
On the other hand, IHS predicts that crude oil prices will remain around $55 per barrel next year.
'This is good for the business,' he said. 'It means that the price of resin will not increase significantly. '