BOPP (Biaxially Oriented Polypropylene Film) prices have remained stable across the Middle East, particularly in Saudi Arabia, where most quotations for BOPP Film were based on rollovers due to subdued market activity and stable feedstock Polypropylene (PP) prices. Production of BOPP Film has been lower across the Sudi Arabian market, with manufacturers winding down operations ahead of Ramadan. Post-New Year, export conditions for the product from Saudi Arabia were underwhelming, especially to the European market as the arbitrage from Middle East to Europe remained largely closed with carriers majorly avoiding the Red Sea trade route. Saudi BOPP Film suppliers remain uncertain, awaiting clearer direction amid weak procurement activity.

Exports of BOPP Film to key markets like North Africa, India, and Indonesia have been unfavorable. In Indonesia, buyers preferred domestic or ASEAN-origin non-dutiable cargo, driven by concerns over the weakening Rupiah, supply reliability, and sluggish demand. Demand from North Africa, particularly Egypt, also remained weak. Economic conditions in Egypt kept suppliers on the sidelines, limiting demand for the product. While inflation eased slightly to 24.1% in December 2024, high interest rates, with overnight rates at 28.25% and deposit rates at 27.25%, continued to suppress consumer spending and credit access, further dampening demand for the product from Egyptian traders.

Turkey, another key export destination for Saudi BOPP Film, also faced unfavorable economic conditions. The Turkish lira lost 1.33% of its value against the USD in January 2025, complicating trade and resulting in lower offtakes from Saudi Arabia. Supply pressure continued with several shutdowns anticipated in Saudi Arabia ahead of Ramadan. However, Turkish suppliers do not expect a significant near-term shortage of BOPP Film, as many still have stocks available.

In India, competitive pricing from local producers led Indian suppliers to source domestically, exacerbated by ongoing maintenance turnarounds across Saudi Arabia. To keep inventories circulating, Saudi suppliers were reported to have redirected most of their BOPP Film supplies to other parts of the Indian subcontinent, excluding India, in hopes of achieving better netbacks. This strategy has provided some price stability for the product in the region.

Aramco’s decision to hike feedstock prices for the second consecutive year, effective January 1, 2025, provided upward support for the Saudi BOPP Film market, which resulted in some suppliers trying to quietly raise the prices of the product but were met by pushbacks.

In Saudi Arabia’s domestic market, consumer spending dropped by 8% in December 2024, leading to more rollovers from suppliers. Spending declines were attributed to salary disbursement timing and the winter holiday season, with drops in sectors like clothing, construction materials, electronics, and health-related products, further limiting demand for the product from the downstream packaging industry.

Looking ahead, BOPP Film prices are expected to rise in February 2025 as the market closes during Ramadan. Several shutdowns in the polypropylene market are expected to lead to lower quotations and higher supplier prices for BOPP Film. Domestic inquiries are expected to improve post-slowdown, further fueling the rise in prices of the product. However, export conditions of BOPP Film to Southeast Asia are expected to remain unfavorable due to coinciding Ramadan and Chinese New Year festivities.