BOPP: tepid demand, membrane city deadlock difficult to break

According to zhuochuang information statistics show that, as of May 20, the price of East China thick light film to 10600-10900 yuan/ton, down 200 yuan/ton from the beginning of the month, the overall downward adjustment of the market.

 

The reason is that the demand side of the BOPP market has limited support for it: as of May 20, only the demand performance in the first week is relatively bright, but the demand performance in the next two weeks is weak, and the orders received on a single Sunday are 166 tons, 94 tons and 113 tons respectively. In terms of the number of days of undelivered orders, the overall decrease. Currently, the number of undelivered orders of BOPP enterprises is 5-15 days, and some of them are up to the middle of June.

 

In addition, the direction of the cost end is not clear: the price range of polypropylene wiredrawing is arranged in shock and adjusted frequently, and the overall operating range is 8600-8850 yuan/ton. The cost side has limited support for BOPP. Zhuochuang information: BOPP stalemate or will continue for the next BOPP market, stalemate or will continue. Demand changes need to be focused on, in addition to the cost side and macro factors need to pay attention to. Demand changes to its impact strength is still in the first place. At present, although the cargo transportation of BOPP market has been restored one after another, the overall demand is in a state of tepid and endless demand. May-June is still in the off-season in the historical cycle, and the probability of demand replenishment predicted in the early stage may decline slightly, and the market demand of BOPP may still be difficult to improve significantly. From the demand side data, BOPP market support is more limited. In terms of cost, polypropylene tends to tidy up the probability is larger. Crude oil is expected to continue high volatility, polypropylene cost support is strong. On the supply side, there is no new capacity release and no new maintenance devices, but some maintenance devices are scheduled to restart, and the supply is expected to increase slightly. On the demand side, short-term logistics difficulties and other factors still exist. The inventory of downstream finished products is on the high side, and new orders are limited. The short-term start-up of downstream products is expected to change little. Overall, the cost side is expected to remain strongly supported. However, from the perspective of supply and demand fundamentals, short-term support is expected to weaken. Based on this, the polypropylene market is expected to be weak and mainly sorted out. In summary, BOPP next market to maintain the probability of stalemate is still large. Demand side substantial volume expectations are not strong, to the market support and boost limited; The change of cost side may still be mainly small fluctuation, and the guidance of cost side also has no obvious direction. Zhuochuang information is expected, the next BOPP interval shock finishing, firm offer focus on negotiations, east China thick light film price in 10500-11000 yuan/ton.


Post time: May-24-2022