AMI study points to positive outlook for BOPP film production
Source: Release Date:2010-06-10 40
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Applied Market Information Ltd. (AMI) has recently completed an update of its global study of the BOPP film industry which points to an encouraging picture of continuing strong demand growth for these films, as it recovers from the effects of the economic downturn. Although demand growth slowed down noticeably in 2008-it did still grow at 2% to reach a market demand of 5.1 million tonnes and picked up again strongly by 6% in 2009 adding a further 300,000 tonnes of demand. AMI is also positive about the demand outlook and sees no reason why global BOPP film demand should not continue growing at respectable rates of 6-7%/year for the next three to four years, driven mainly by growth in Asia and to a lesser extent in Eastern Europe, Russia and Brazil. However, despite this the industry continues to face many challenges. On the face of it this should be an attractive, profitable industry with its high growth rates, a fragmented converter customer base and high barriers to entry, but the reality is that there appears to be no shortage of capital to fund new plants so that the business is continually plagued by over-investment resulting in persistent over supply, weak pr icing and poor returns with an increasingly powerful and globalised customer base. www.amiplastics.comadidas
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