“High demand” tape film can change the status of BOPP?

BOPP demand: show the demand of tape film on the first working day of September

According to the statistics of Zhuochuang Information, BOPP enterprises have a preference for receiving orders on the first working day of September. The number of orders received in a single day is as high as 1000-4000 tons, most of which are concentrated on the tape film, while the highest number of orders received in a single day in the whole August is only 1000 tons. On The 2nd, the overall order receiving pace of BOPP enterprises slowed down, but some enterprises offered profits to absorb orders. As of 16:30 PM on the 2nd, the orders received by the enterprise on that day had reached 4000 tons.

The increase of orders received by BOPP enterprises in this round, one is the centralized release of tape film demand, and the other is the absorption of orders caused by the initiative of individual enterprises.

And the adhesive tape film needs improvement, because the downstream tape mother has continued to fall in August 650 yuan/ton, buyers and sellers of afternoon the market uncertain mentality appear a certain fluctuation, buyer’s coincided with replenishment, the buyer after adequate margin tape mother small rebound in prices hit bottom again to stimulate users continue to purchase, tape mother enterprise more orders, The rigid demand for BOPP tape film is better. The purchasing price of BOPP tape film in this round is 10,800-11,200 yuan/ton, which is at a low level, so the tape master coil production enterprises are relatively decisive in purchasing, and the orders given to BOPP enterprises in a single day are concentrated.

Enterprises take the initiative to transfer interest to absorb orders, mainly in the following two situations: first, some enterprises put into operation of new devices, transfer interest to absorb orders to prepare for the production of new devices; Second, individual enterprises because of long-term high prices and inventory accumulation, in BOPP market or the key point of reversal, with the help of spot advantage to let the single.

BOPP price: no rebound yet

According to zhuochuang information data statistics, the week of August 30 BOPP price overall decline, as of September 2, BOPP thick light film price in 11100-11300 yuan/ton, compared with the same period last week lower than 75 yuan/ton, compared with the same period last month lower than 50 yuan/ton; Transaction center of gravity in 10900-11300 yuan/ton, compared with last week 100-200 yuan/ton, local lower prices also save.

Into September, BOPP enterprises received orders to improve the BOPP market has not brought effective boost, film price after finishing.

Zhuochuang information: BOPP stop fall small rebound period, medium – and long-term is still short

For the next BOPP market, in the short term, in view of the current tape film short-term demand driven, BOPP stop board is firmly set, but whether a strong rebound still needs sustainable order support or cost promotion, during which there may be a small rebound.

In the medium and long term, BOPP is expected to fall again is still strong.

1. New devices will be put into operation soon, and supply is expected to increase

In the second quarter, China BOPP delayed the production of new units due to public health events, but as time goes by, the production schedule of the units is accelerating. According to Zhuochuang Information, there is a strong expectation that Zhejiang Benduo 10.4-meter line will be put into production in early September, and further follow-up is needed to implement the actual production. After that, Shangyu Kaicheng, Anhui Yourijiu, Yongguan, Shouyi, Furong new materials and other devices into production have followed up. The release of new capacity will greatly increase China’s BOPP supply. The increase in supply will increase the competitive pressure among BOPP enterprises, which will first be reflected in the price.

2. BOPP “Gold nine silver ten” demand expectations suggested lower

In terms of the BOPP market demand in 2021, the past two quarters deduce the “off-season is not weak”, entering August BOPP market buyers and sellers are expecting the arrival of the “peak season”, but the BOPP market demand in August is not relatively bright performance. In addition, the performance of BOPP demand in August was lower than that in June and July.

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Entering September, for the packaging industry, “gold nine silver ten” peak season expected to arrive, but in the past August market performance, Zhuo Chuang information suggested that the peak season expectations will be lowered. The purchasing pace of users in BOPP market may maintain rigid demand, and the demand may maintain a certain level, but the expectation of significant volume increase may be small. First, orders for the Mid-Autumn Festival have been consumed in advance from July to August. Second, the export demand of BOPP may decrease from September to October.

3. BOPP’s profit preference is to save and yield profit space

As for BOPP profit, according to zhuochuang information statistics, the current PROFIT of BOPP is 1200-1400 yuan/ton. If BOPP enters into the supply-demand imbalance with increasing supply and flat demand in the later stage, the current high profit space of BOPP may be compressed to a certain extent.

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4. There is a narrowing space for the price difference between various categories of films

In addition to the above risks, BOPP is also faced with the problem that the price difference between various categories of films has not recovered to a reasonable value. Take 18μ light film as an example, the current BOPP thick light film and the price difference is still in 750-1200 yuan/ton, other categories of film difference is larger. Therefore, the current situation can not be ignored.

To sum up, the temporary improvement in demand for tape film cannot reverse the current BOPP stalemate or even weak status quo. For BOPP market, it plays a role in stopping the decline in the short term, and BOPP faces greater downward pressure in the medium and long term. Zhuochuang Information is expected that the price of BOPP thick film is 10800-11500 yuan/ton in mid-early September, and there may be a certain risk of price decline in the middle and late part of September.


Post time: Sep-07-2021