BOPP price maintains the upward trend in its peak season –
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BOPP price maintains the upward trend in its peak season

2020-10-16 08:52:21 CCFGroup

After the National Day holiday, both PP and BOPP markets moves higher. Compared with PP, the rise of BOPP is more obvious. On Oct 14, offers for thick film rise by 4.4% to around 10,400-10,800yuan/mt, some offer high at 11,000yuan/mt.

1. Support from raw material cost side

After the holiday, futures rebounds sharply by nearly 265yuan/mt, and spot price rises accordingly. In addition, the macro sentiment is good. Downstream procures to replenish their stocks, inventory digests quickly and the inventory pressure is basically gone. In the short-term, the raw material price maintains the upward trend and supports the market.

2. Downstream demand is healthy.

Since August, downstream demand improves continuously, and orders have continued to follow up, especially in September and October. According to the latest research, most companies have orders ranging from one week to one month, and those with large quantities can last for nearly two months. The replenishment of BOPP plants also speed up the transfer of raw materials to a certain extent, resulting in the tight raw materials market for a long time and driving up the price of raw materials.

3. Continuous increase of cash flow in film plants

As the fluctuation range of BOPP and PP is not the same, the price spread between them continues to widen, which has now reached 2250yuan/mt from 1950yuan/mt. On Oct 12, BOPP cash flow is about 980yuan/mt, which is close to the high level of 2020.

In the short term, BOPP plants have substantial orders and prices may remain high. Since downstream is in its peak season, demand is expected to increase and market price may continue to rise.