BOPP, BOPET supply and demand difficult to balance, profit spreads

In general, the reason for the soaring prices of BOPET is the shortage of supply in the market. It is basically the United States' implementation of anti-dumping tariffs on China's BOPET film, cutting off the export channels of domestic PET film, and domestic film makers can only focus on profit reduction for domestic sales. However, the demand for PET in the United States has not been reduced accordingly. Conversely, as the global economy recovers and the low-carbon economy and the solar energy industry are vigorously developed, the demand for BOPET continues unabated. The strong purchasing power of the United States has shifted from China to Southeast Asia, Europe, and other regions. The resources in these areas have become very tight. It is only natural for China to fill this supply gap. As a result, orders for domestic export orders from film makers have increased significantly; domestic demand is also stable. Growth, a large number of export orders also make the domestic market supply exceeds demand, so far orders have been ordered orders have been discharged to December, other manufacturers also have more than 40-60 days of orders ranging from strong demand so BOPET prices all the way up , created a profit of the current market.

Due to demand constraints, BOPP prices have been declining since the end of April. The recent rapid recovery in prices has only been a short-lived one. It has now entered a downward adjustment phase.

From the chart we can see that since the end of April, the BOPP market has not started due to downstream demand. Due to the oversupply effect and the fact that the raw materials are in a downturn channel at this time, the BOPP price has been maintaining a decline in the fall. However, after entering the middle and late July, the prices of PP raw materials have been rising under the influence of petrochemical prices. At this time, BOPP began to rapidly follow the price of raw materials due to cost-driven prices, rising by RMB 800/ton in one week. Although the price has gone up, but the downstream demand has not been activated, coupled with the film factory concerned about raw material prices continue to rise, so the film factory orders are not active, the market wait and see atmosphere is relatively strong. After the rapid rise of raw materials, due to demand restrictions coupled with the sharp fall in crude oil prices, the price immediately entered a downward path. At this time, the BOPP rise was halted due to lack of support. The price of the film plant began to follow the decline in raw materials. Until now, the mainstream price of thick film in eastern China has remained at 12100-12300 yuan/ton.

In August, September and October, it is a traditional demand season for the packaging film market, because the demand for the Mid-Autumn Festival and the National Day will increase substantially. Now that it has entered the mid-to-late August, there is no significant change in the current downstream demand. Therefore, the plastic film market has recently been dominated. However, due to the strong demand during the peak season, there is still a lot of support for the market outlook, so we still have a lot of expectations for the market outlook, coupled with the recent high prices of raw materials finishing trend, so we are still optimistic about the market outlook, the market outlook is easy to rise and fall.