17 February 2010 06:37 [Source: ICIS news]
By John Richardson
“Some of the BOPP film players I met during a recent trip to
End-use applications for BOPP film include flexible packaging, pressure-sensitive tape, stationery and cable and insulation.
Import duties on BOPP film exported from
This was the result of the ASEAN-China Free Trade Agreement (ACTFA) coming into effect.
Nameplate capacity totalled 3.2m tonne/year in 2009 versus domestic demand of only 2.2m tonne/year, said
“These brand-new lines tend to be run very hard – at or close to 100% - for reasons of economics, resulting in last year’s actual surplus being significant.
“The Indonesian market is also in oversupply, meaning the buyers already had the upper hand, even before ACTFA.”
The local market would see more overcapacity when a new BOPP line comes on stream at the end of 2010, boosting capacity by more than 30,000 tonne/year, he added.
LLDPE stretch films applications are similar to those of BOPP film, but tend to be lower down the value chain.
“The Philippine processing sector is also going to lose out under the agreement, I think. It lacks the scale of
The introduction of ACTFA has led to Indonesian claims that as many as 7.5m manufacturing jobs across all industries, from a total of 30m, could be lost.
But renegotiating the deal would be highly complex, expensive and is therefore very unlikely, Ed Sim, a leading trade lawyer earlier told ICIS news.
This left antidumping and other trade-protection duties as the only viable route open to ASEAN industries that stand to lose out under ACTFA, added Sim, who is partner in the
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