BOPP price hits a record high –
Home >> Textile News >> BOPP price hits a record high

BOPP price hits a record high

2021-10-15 07:46:51 CCFGroup

Returning from the National Day holiday, BOPP market continues to rise sharply. As of Oct 9, mainstream offers for thick film in East China are around 13,900-14,100yuan/mt, an increase of 1,200yuan/mt compared with the pre-festival period. At the same time, the price has also hit a record high.

By comparison, it is not difficult to find that the increase of BOPP is much higher than that of feedstock PP. From a specific time point of view, the inflection point at which the BOPP-PP price gap begin to widen is after the Mid-Autumn Festival holiday, and then it continues to expand. On October 9, the cash flow of BOPP was about 2500yuan/mt, which is the same as the highest value in 2020.

The reasons are as follows:

On the one hand, from mid-September, under the background of double control policy, PP futures moves higher driven by the capitals, while crude oil, coal, natural gas and other basic energy prices continues to rise, PP prices rise rapidly, driving BOPP prices up at the same time.

On the other hand, with the implementation of the power restriction policy in various regions, the overall operating rate of BOPP plants has been less than 50%. The supply of manufacturers reduces, the resources in the market are tight and price has increased sharply. At the same time, plants only take limited orders, and the delivery cycle has been extended to varying degrees. In addition, some plants have ceased their orders and mainly delivered the orders of previous stage.

At present, although there is no latest news on the power restriction policy, according to feedback from some factories, the possibility of continuing power cuts in the fourth quarter is relatively high. The pattern of few goods and high prices is expected to continue, the price spread between PP and BOPP market may continue to expand, and BOPP prices are expected to rise, which may also push up the prices of raw materials.

which may also push up the prices of raw materials.