For the Quarter Ending September 2024
North America
In Q3 2024, the North American BOPP film market experienced a gradual month-on-month decline due to several factors. Reduced demand from downstream industries, logistical challenges, and uncertainty in deliveries significantly impacted prices. In July, the cost of BOPP improved compared to August, driven by a notable increase in feedstock PP prices in the American market. However, in the subsequent months, costs began to decline, which supported the BOPP market in terms of production expenses.
In Mexico, the market experienced the most significant price changes, reflecting the overall negative sentiment. Seasonal factors and global economic conditions also contributed to the price decline. The correlation in price changes indicated a strong downward trajectory, with a notable 5% decrease from the previous quarter.
The second half of the quarter saw a further decrease of 2% from the first half, highlighting the continued negative trend. The quarter-ending price of USD 2540/MT of BOPP Film 30 Micron CFR Manzanillo in Mexico encapsulates the prevailing negative pricing environment in the region.
APAC
In the APAC region, the third quarter of 2024 has been characterized by a decline in prices for BOPP Film, influenced by several significant factors. Weak demand from downstream industries, particularly in the packaging sector, has played a pivotal role in driving prices down. Additionally, the market has seen a surplus of feedstock, leading to a decrease in cost for BOPP production. The Mid-Autumn Festival holidays further dampened trading activities, contributing to the overall bearish sentiment in the market. Downstream enterprises have not shown signs of improvement in demand, with mostly just in demand replenishment, insufficient demand, flat trading, low transaction volume, and a wait-and-see attitude. Purchasing intentions are not high, and market demand has weak support for prices. Comparing to the previous quarter in 2024, there was a -2% decline, with the second half of the quarter experiencing a further -3% drop in prices. The quarter-ending price for BOPP Film 30 Micron FOB Shanghai in China stood at USD 1320/MT, reflecting the prevailing negative pricing environment. Overall, the pricing trends in the region have been predominantly negative, marked by a consistent decrease in prices driven by subdued demand and ample supply.
Europe
In Q3 2024, the Europe region experienced an increase in BOPP Film prices, driven by significant factors influencing market dynamics. The rise in feedstock PP costs exerted upward pressure on prices, despite subdued demand from the downstream packaging sector. Global crude oil prices also played a role, with geopolitical tensions and summer fuel consumption optimism contributing to the overall price trend. New export orders continued falling at a marked pace, albeit one that was slightly slower than in June and weaker than the decline in total new business. Germany, in particular, witnessed the most substantial price changes, reflecting the broader market conditions. Comparing to the previous quarter in 2024, prices dropped by 1%, showcasing fluctuations in pricing trends. However, within the quarter, prices increased by 1% between the first and second half, highlighting a changing market sentiment. The quarter-ending price for BOPP Film 30 Micron FD Hamburg in Germany stood at USD 2675/MT, signaling a consistent increase in pricing. The pricing environment in Q3 2024 for BOPP Film in Germany remained positive, reflecting the overall upward trend in market prices.
MEA
Throughout Q3 2024, the market for BOPP Film in the MEA region has maintained a stable pricing environment. Several factors have contributed to this stability, including balanced supply and demand dynamics, moderate production levels, and consistent feedstock costs. The overall market sentiment has been influenced by sluggish demand from downstream sectors, leading to a lack of significant price fluctuations. In the case of Saudi Arabia, which has experienced the most price changes in the region, the pricing trends have mirrored the broader MEA market. Moreover, the percentage change from the previous quarter in 2024 has been recorded at 0%, reflecting a stable pricing trend. Additionally, the comparison between the first and second half of the quarter 3 has shown no significant price variations. As Q3 comes to a close, the latest quarter-ending price stands at USD 1760/MT for BOPP Film 30 Micron (Spot) Ex-Al Jubail in Saudi Arabia, highlighting a continuation of the stable pricing environment observed throughout the quarter.
South America
In Q3 2024, the South American BOPP film market experienced a gradual month-on-month decline due to several factors. Several factors contributed to this decline, including sluggish demand from downstream industries, logistical challenges, and uncertainties in deliveries. The balance between supply and demand played a crucial role in maintaining price stability. Brazil, in particular, witnessed significant price changes, with prices decreasing by 5% compared to the previous quarter. Seasonal factors, such as reduced demand during the winter season, further impacted pricing dynamics. Industries faced challenges from hurricanes, which disrupted the supply chain, while weak orders from the overseas market also contributed to price volatility. There has been no improvement in orders, leading to a focus on meeting only normal start-up requirements. The correlation between price changes in the first and second half of the quarter was negative, emphasizing the overall downward trajectory. The quarter-ending price of USD 2560/MT of BOPP Film 30 Micron CFR Santos in Brazil symbolizes the prevailing negative sentiment in the pricing environment.
For the Quarter Ending June 2024
North America
The price of BOPP Film in the North American region exhibited a stable to increasing trend throughout the second quarter of 2024. In the initial two months, the cost remained steady, and then it rose due to an improvement in feedstock prices. This upward trajectory can be attributed to several pivotal factors, predominantly led by heightened feedstock polypropylene costs and aggravated logistics issues, such as elevated freight charges and transportation disruptions. Additionally, the volatility in crude oil prices has exacerbated the cost pressure on raw materials, further bolstering the price of BOPP films. The observed tight vessel space availability has constrained supply chains, driving up costs and influencing market prices.
Focusing on the USA, where the price changes have been most pronounced, the BOPP film market has experienced a consistent upward trend. The seasonal demand in the second quarter, typically peaking for plastic finished goods, combined with high-cost pressures from feedstock polypropylene, has reinforced this price elevation. Compared to the same quarter last year, prices surged by 8%, reflecting an intensifying market environment. However, the price increment remained at a 0% change from the previous quarter, indicating a steady climb in costs from an already elevated starting point.
The first and second halves of the quarter also saw a 7% price increase, underscoring the persistent upward pressure on BOPP film prices. Conclusively, the quarter ended with the price of BOPP Film 30 Micron DEL Louisiana at USD 2436/MT, encapsulating the bullish sentiment throughout this period. Despite facing logistical and supply chain challenges, the pricing environment for BOPP films in the USA has been decidedly positive, driven by sustained feedstock cost pressures and robust seasonal demand.
APAC
In Q2 2024, the BOPP Film market in the APAC region experienced a consistent upward trend in pricing. This quarter has been marked by several significant factors influencing market prices. The primary catalyst for this surge has been the escalating costs of upstream raw materials like propane and propylene, driven by strong buying trends and volatility in crude oil prices. Higher feedstock prices have exerted considerable cost pressure, compelling manufacturers to elevate BOPP Film prices. Additionally, tight vessel space availability has augmented freight charges, further contributing to the overall price increase. The manufacturing sector's robust performance, as indicated by strong Purchasing Managers' Index (PMI) figures, has also played a pivotal role in sustaining high demand for BOPP Film, particularly in the packaging industry.
Focusing on South Korea, which has witnessed the most significant price changes in the region, the overall sentiment has been positive. The market displayed a clear seasonal trend, with price increases correlating with heightened demand during peak production periods. The price of BOPP Film in South Korea showed a 3% increase from the previous quarter of 2024, despite a -5% change when compared to the same quarter last year. This fluctuation underscores the volatility and recovery from a lower base in 2023. Within Q2, the price difference between the first and second half of the quarter was recorded at 1%, indicating a steady upward trajectory as market conditions became more favorable. Conclusively, the quarter ended with BOPP Film 30 Micron FOB Busan priced at USD 1680/MT, reflecting the overall positive pricing environment. The combination of high feedstock costs, increased freight charges, and robust manufacturing demand has driven this upward trend, establishing a stable yet increasingly favorable market for BOPP Film in South Korea.
Europe
In Q2 2024, the BOPP Film market in Europe has experienced a noticeable downturn, largely driven by weak demand from downstream packaging industries and an oversupply of materials. Significant factors influencing market prices include persistently low production costs due to reduced feedstock Propylene and crude oil prices, coupled with lackluster purchasing activity. The European market's shift towards sustainable packaging solutions and eco-friendly alternatives has further dampened demand for traditional BOPP films, exerting downward pressure on prices.
Germany, in particular, has witnessed the most substantial price changes. The overall trend in Germany has been characterized by a combination of reduced consumer spending, sluggish economic growth, and the influx of delayed import cargoes, leading to an oversupply scenario. Seasonality has played a role, with manufacturers ramping up production in anticipation of increased summer demand, only to face continued weak demand, thus exacerbating the supply surplus. The correlation in price changes has also been influenced by competitive pricing strategies from suppliers aiming to clear summer inventories, which has further pressured prices.
When comparing the year-over-year change, BOPP Film prices have declined by 1%, while the quarter-over-quarter change from Q1 2024 shows a more pronounced decrease of 3%. Within Q2, a notable price drop of 4% between the first and second halves of the quarter underscores the declining sentiment in the market. Concluding the analysis, the quarter-ending price for BOPP Film 30 Micron FD Hamburg in Germany stands at USD 2655/MT.
MEA
In Q2 2024, the BOPP Film market in the MEA region exhibited a largely stable pricing environment. This period has seen a consistent balance between supply and demand, driven by several critical factors. A significant contributor to this stability has been the ample availability of BOPP Film, ensuring that manufacturers and traders maintain steady supply levels. Additionally, the low demand from downstream industries, particularly the packaging and labeling sectors, has played a crucial role in preventing price volatility. The tepid purchasing activity, marked by cautious stocking and a focus on depleting existing inventories, further corroborated this trend.
Focusing exclusively on Saudi Arabia, which experienced the most notable price changes, the overall trend remained stable. Seasonality did not significantly impact the market, and the correlation in price changes reflected this equilibrium. Compared to the same quarter last year, there was a 6% price increase, indicating a moderate but steady rise in value. From the previous quarter in 2024, prices saw a 3% uptick, reinforcing the stability theme. Interestingly, the price comparison between the first and second half of the quarter showed a 0% change, underscoring the market's steadiness.
The quarter-ending price for BOPP Film 30 Micron (Spot) Ex-Al Jubail in Saudi Arabia stood at USD 1770/MT. The stable pricing environment has been positive for market predictability, though it reflects a tepid demand scenario.
For the Quarter Ending March 2024
North America
The BOPP Film market in North America continued to experience price volatility in the first quarter of 2024. Several factors contributed to these fluctuations. Firstly, the global supply chain continued to face challenges, including shipping delays and ongoing conflicts in the Red Sea, which disrupted the supply of BOPP Film. Secondly, the downstream packaging industry still witnessed weak demand due to reduced order volumes and insufficient market demand. Lastly, the cost of the product was still impacted by expensive raw material prices and the volatility of crude oil prices.
In Mexico, prices for BOPP Film further declined by 7% compared to the previous quarter, with an additional 3% decrease in the second half of Q4 2023. However, despite these fluctuations, the correlation price percentage of Mexico remained stable due to the average demand for BOPP Film.
Overall, the BOPP Film market in North America continued to face challenges in the first quarter of 2024, with an unstable global supply chain and weak downstream demand. These factors resulted in price fluctuations during this period. Additionally, the market experienced multiple shutdowns, further contributing to the disruptions in the industry.
APAC
During the first quarter of 2024, the BOPP Film market in the APAC region demonstrated stability, buoyed by various contributing factors. Factors such as reduced demand from downstream industries, ample product availability, and extended delivery durations played pivotal roles in shaping market dynamics. Particularly noteworthy were the significant shifts in BOPP film prices observed in South Korea, where prices exhibited a steady seasonal pattern throughout the quarter. The growth in demand lagged increases in production, leading to sufficient existing capacity to absorb additional orders, resulting in a slight decrease in backlogs of work. Analysis of correlation price percentages revealed a coherent movement in prices. Compared to the corresponding period last year, the market witnessed an adverse percentage change of 11%; however, there was a 4% positive shift from the previous quarter. Moreover, a marginal 2% price comparison was noted between the first and second halves of the quarter. Price fluctuations primarily stemmed from supplier underperformance and prolonged input delivery schedules, accentuating market volatility.
Europe
In the European region, the cost of BOPP Film remained elevated in Q1 2024, primarily due to the persistent high-cost pressure stemming from Polypropylene (PP) feedstock. Specifically, in March 2024, the prices of Polypropylene surged by around 9%, significantly impacting various downstream derivative sectors, particularly the BOPP Film market. Throughout the first quarter of 2024, European Polypropylene (PP) prices exhibited a consistent upward trajectory, primarily fueled by the persistent scarcity in supply. Additionally, logistical challenges and material constraints have further strained the supply chain, ultimately amplifying the upward pressure on prices. Conversely, the demand side of the market has also played a significant role in propelling prices upwards. Despite the supply challenges, demand fundamentals have remained robust for PP, further intensifying the upward price momentum. However, sentiments within the packaging film industry saw a decline, primarily influenced by prevailing economic factors. This downturn in sentiment translated into a more cautious approach among consumers and businesses, leading to purchasing activities being primarily driven by immediate needs.
MEA
In Saudi Arabia, BOPP prices saw a significant rise since the onset of 2024, largely driven by a surge in the primary feedstock, Polypropylene (PP), during Q1. This spike in PP prices had a pronounced effect on downstream derivative sectors. Compared to the previous quarter, there was a substantial 14% increase in BOPP prices. Within the quarter, a 4% price difference was observed between the first and second halves. However, disruptions in input freight arrivals, stemming from the Red Sea shipping crisis, posed challenges to business operations. These disruptions led to extended delivery times and contributed to the poorest supplier performance reported in a year. Furthermore, the tight supply of the product further compounded this price trend, indicating a complex interplay of factors influencing the market dynamics. Moreover, the downstream packaging sector maintained an average performance, with merchants adopting a strategy of procuring materials strictly based on immediate needs. By the end of the quarter, the price for BOPP had stabilized at USD 1775 per metric ton on an Ex-Al Jubail basis.
For the Quarter Ending December 2023
North America
The North American BOPP Film market witnessed to a bearish market situation with moderate supply and demand from the downstream packaging sector of FMCG industries. The prime reason for the declination in prices is attributed to the continued effect of declining prices of feedstock Polypropylene overall fourth quarter compared to previous quarter.
The demand for exports from the downstream packaging sector was constant, but the softer turnaround of the automotive industry in October reduced the demand in the importing market. In Mexico, the price of BOPP Films depreciated due to the constant demand from the downstream packaging sector and relief of sanctions on Venezuelan Crude Oil that depreciated production costs of Polypropylene.
In December, the lack of new incoming business afforded companies the opportunity to attend to existing backlogs. The absence of additional orders allowed businesses to focus on fulfilling and completing outstanding work that had accumulated over time. This situation highlights a period of relative stability or reduced demand, providing companies the chance to streamline their operations by addressing and clearing existing backlogs.
APAC
In the APAC region, the BOPP Films market experienced marginal fluctuations in the final quarter of 2023, showing a downturn compared to the preceding quarter. The stability in feedstock Polypropylene prices had a direct influence on BOPP prices in the region during this quarter. In China, post the festive season of the Mid-Autumn festival, demand from the downstream packaging sector gradually diminished, leading to more restrained purchasing sentiments. The increase in industrial activities in China resulted in abundant supplies, creating an oversupplied market, and suppliers had to manage this surplus by offering discounted prices. Meanwhile, in Korea, there were no significant changes in demand for exports to East Asian and North American markets, as the festive season did not gain substantial momentum. Supply chain systems remained stable with no reported disruptions. Additionally, the sharp decline in upstream crude oil prices in the final quarter of 2023 positively impacted production costs and feedstock costs in the APAC region.
Europe
The European BOPP Films market in the current quarter of 2023 (Q4) witnessed a bearish trend characterized by ample product supplies and moderate demand from the Fast-Moving Consumer Goods (FMCG) packaging sector. The pricing fluctuations in BOPP Films were mainly influenced by uncertainties in crude oil prices and the devaluation of Polypropylene, contributing to reduced production costs. Towards the end of 2023, Germany's manufacturing sector continued to contract, albeit showing indications that the most severe phase of the decline might be subsiding. December witnessed a reduction in purchasing activity, with goods producers aiming to streamline their stocks. Manufacturers, in response to lower capacity utilization, once again reduced workforce numbers. The lack of new orders resulted in a sharp decrease in backlogs of work for manufacturers. The decline in new work from overseas also decelerated, primarily due to subdued demand across European markets. Additionally, the Christmas holidays played a role in slowing down demand from potential customers.
MEA
The BOPP Films market in the MEA region during the fourth quarter of 2023 exhibited a bearish trend compared to the preceding quarter, marked by moderate supply and low demand, resulting in a stable market. The depreciation in BOPP Films prices was influenced by the declining prices of the feedstock Polypropylene. Uncertainties in Crude Oil prices were anticipated to further contribute to lowering production costs. Saudi Arabia experienced the most significant price change in the product. Continuous decreases in upstream crude oil prices during the fourth quarter supported lower production costs for BOPP Films and also led to affordable feedstock Polypropylene in the Saudi market. Despite improvements in non-oil sectors, the consumption of BOPP remained weak among enterprises due to oversupply and prevailing demand conditions in overseas markets. Merchants in the Saudi market worked with existing stock levels and offered year-end discount prices, impacting the market. During the final month of fourth quarter, the cost of BOPP film was settled at USD 1552/MT on an Ex-Al Jubail.
For the Quarter Ending September 2023
North America
Prices of BOPP Films have witnessed a marginally bullish trend in the North American market with prices appreciating by almost 3.5%, in the third quarter of 2023. The prime reason for the increments in the prices was attributed to the increasing costs of feedstock Polypropylene which had also appreciated by more than 2% in the North American market. Moreover, demand from the downstream packaging industry was reported to be constant as purchasing sentiments amongst the local populace remained restrictive as the Federal Bank continued to increase interest rates. With the core CPI again inflating in September and production costs rising amidst constant demand, suppliers found it challenging to maintain adequate supplies to cater to the requirements of current demand. Additionally, increasing prices of upstream Crude Oil which appreciated almost 24% in the third quarter further added to production costs. Demand for BOPP Films in the international market was also strong as the prices of BOPP Films in the key importing Central and South American markets have also increased.
APAC
Prices of BOPP Films have witnessed a bullish situation and have appreciated in the Asian market by almost 3%, throughout the 3rd quarter of 2023 due to increasing prices of feedstock polypropylene which also increased by almost 5%. Demand from the downstream packaging sector was reported to be constant which was the prime factor attributed to rising prices of the product. Additionally, prices of the product also increased as upstream Crude Oil prices surged by almost 24% in the third quarter of 2023. With purchasing sentiments gradually improving due to the Mid-Autumn Festival, existing supplies proved to be insufficient to cater to the requirements of existing demand. Also, production rates were recorded to be moderate which was unable to generate enough supplies for circulation in the market. International offers for exports also strengthened, particularly in the Southeast Asian market, due to improving sentiments of the festive month. This consequently left improvements in good profit margins for the suppliers to take advantage of, amidst rising demand.
Europe
The prices of BOPP Films have witnessed a marginally bullish situation in the European market with prices appreciating by more than 2% due to the increasing costs of feedstock Polypropylene, which have also appreciated by almost 2% in the European market. This consequently led to rising production costs as prices of upstream Crude Oil also increased by almost 24%. Demand from the packaging industry was recorded to be constant as trading activities across Europe began to return to normal. Moreover, problems in the existing supply chain surfaced with large parts of the European railway system requiring heavy maintenance and suffering from a shortage of staff. Increasing production costs, high inflation rates, and problems in the supply chain system largely prevented the circulation of adequate inventory which consequently led to increments in the prices. Moreover, suppliers have been recorded to keep a check on the existing inventory to prevent an oversupplied market. Current prices of BOPP Films are largely driven by Polypropylene prices which are further expected to incline as the third quarter terminates.
South America
Prices of BOPP Films have witnessed a strong bullish trend in the South American market, as production costs in the exporting North American market increased due to increasing prices of feedstock Polypropylene. As the Federal Bank continued to increase interest rates factory gate charges also increased which further added to importing costs and port-leaving costs which further added to transportation charges. Moreover, congestion across South American ports has also caused delays in the procurement of products, which further increased problems in the supply chain system. Moreover, it has been reported that the deliberate creation of a shortage of suppliers by major suppliers based across South America has also inflated the prices of the product as inventories from the exporting North American market continued to diminish. Increasing prices of upstream Crude Oil are also attributed to hiking prices of the product. Amidst the constant demand from the downstream packaging sector, the rising costs of upstream and feedstock, and limited inventories from North American ports prices of BOPP Films recorded have been to show a sharp inclination.
For the Quarter Ending June 2023
North America
The North American BOPP Film market encountered a bearish trend during the second quarter of 2023. In the USA, the price of BOPP Film experienced consecutive declines, with reductions of approximately 1% in April, 4% in May, and 3.5% in June 2023. These declines were influenced by decreased demand from the downstream food and beverage packaging industry, which was impacted by the prevailing gloomy economic conditions. Despite the challenging market environment, the supply of BOPP Film remained abundant in the country throughout the quarter, and no material shortages were experienced during this period. In May and June, the consumer price index for food and beverages in the USA increased from 318.613 to 319.638, reflecting some inflationary pressures in the market. An encouraging development during this quarter was the successful preliminary agreement reached between the Longshore union and employers of dockworkers at U.S. West Coast ports. The new six-year contract encompassing all ports brought an end to 13 months of negotiations and alleviated concerns related to the supply chain. This agreement also played a significant role in easing commodity prices in the region. By the end of the second quarter, the price of BOPP Film in the USA was hovering around USD 2401/MT, reflecting the bearish market sentiment during this period.
APAC
In the second quarter of 2023, the Asian BOPP Film market experienced a downtrend. In South Korea, the price of BOPP Film witnessed consecutive declines, with decreases of approximately 1% in April and May, and a more significant 4% drop in June. These reductions in price were influenced by the declining costs of Polypropylene, the primary feedstock for BOPP Film production. Polypropylene prices fell by around 1.4%, and 7% in May, and June, respectively. A similar trend was observed in Singapore, where the prices of raw materials experienced negative growth of 12% throughout the entire quarter. The lower demand from the downstream food and beverage industry, combined with the abundance of BOPP Film inventories in the Asian market due to cheaper raw materials, contributed to this situation. Furthermore, overseas demand for the product, especially from Europe and Russia, remained low to moderate during this period. The upstream prices of Propylene and Crude Oil also fell during the quarter, further contributing to the bearish trend for BOPP Film. In addition, slower purchasing activities in the region were influenced by global inflationary pressures. China's Purchasing Managers' Index (PMI) experienced a slight decrease from 95.3 in April 2023 to 94.1 in May 2023, indicating some challenges in the manufacturing sector. However, there were signs of improvement in industrial activities during June 2023, as the PMI rose slightly. The industrial growth rate declined from 5.6% in April 2023 to 3.6% in May 2023, reflecting the impact of the prevailing market conditions.
Europe
The European BOPP Film market experienced a bearish trend throughout the second quarter of 2023. In the United Kingdom, the price of BOPP Film witnessed consecutive declines, with approximately 2.5% and 3.5% decreases in May and June, respectively. These price reductions were influenced by the declining prices of feedstock Polypropylene, which experienced a drop of around 3% and 4% in May and June, respectively. These declines were driven by concerns over a potential slowdown in the global economy and the possibility of interest rate hikes in the US and Europe. The demand from downstream industries, particularly the food and beverage packaging sector, remained lackluster, resulting in an ample supply of BOPP Films in the European market. Despite this, there was a positive development in supply chains across the eurozone, with notable reductions in average lead times by the end of the second quarter. The downward trend in the upstream prices of Propylene and Crude Oil also contributed to the overall price trend for BOPP Film during this quarter. Eurostat reported a decline in the producer price index in Germany from 136.9 in March to 135.1 in May 2023, further reflecting the market conditions. However, there was a minor increase in the price of BOPP Film in the UK market, rising by approximately 1%, as the price of feedstock Polypropylene experienced a similar increase in April 2023. At the end of the second quarter, the price of BOPP Film in the UK was hovering around USD 1839/MT, reflecting the bearish market sentiment during this period.
Middle East
In the second quarter of 2023, the Middle East BOPP Film market experienced a downtrend. In Saudi Arabia, the price of BOPP Film experienced a 4.6% negative growth throughout this quarter. These reductions in price were influenced by the declining costs of Polypropylene, the primary feedstock for BOPP Film production. Polypropylene prices fell by around 1.5%, 1%, and 7% in April, May, and June, respectively in the Saudi Arabian market. In June 2023, the annual inflation rate in Saudi Arabia experienced a slight decline, easing to 2.7% compared to the previous month's rate of 2.8%. Saudi Aramco's decision to cut upstream propane prices in June had a cascading effect on the downstream derivative industries, including the BOPP Film market. Additionally, the Middle East faced ample supplies and low demand from China's petrochemicals industry, adding further pressure on market sentiment. The optimism surrounding demand growth faltered as oil prices remained under pressure despite Saudi Arabia's surprise output cut. Concerns over a weak global economic outlook and increased Russian oil flows and US production also contributed to bearish market sentiment. At the end of the second quarter, the price of BOPP Film in Saudi Arabia was hovering around USD 1685/MT, reflecting the bearish market sentiment during this period.
For the Quarter Ending March 2023
North America
During the first quarter of 2023, the price of BOPP Film increased in the USA market as the price of feedstock Polypropylene increased during this time. The overall demand for the product was high, and demand grew from the downstream Packaging sector as well as from overseas under the influence of global demand. During summer or the arrival of summer, people spend more time outdoors, go on picnics, and host barbecues and other gatherings. This increased consumption leads to a higher demand for packaging materials to store and transport these products. BOPP film is an ideal packaging material as it provides excellent clarity, moisture resistance, and airtightness, which helps in preserving the freshness and shelf-life of the products. The supply of the product during this quarter was stable across the country, and no shortage of material in the market was observed during this period.
APAC
The price of Biaxially oriented polypropylene (BOPP Film) decreased in the Chinese and Indian markets this quarter, primarily because of the lowered price of its feedstock Polypropylene in those countries. The Chinese market was impacted by the Chinese Lunar New Year festivals, as offices and factories in China were closed for approximately three working weeks. This allowed workers to travel back home to spend the holiday with their families, resulting in low demand for the product. Furthermore, this trend was influenced by the global decrease in the price of feedstock during this time, impacting Asian countries' product prices. In contrast, South Korea experienced positive growth in Q1 2023 for the commodity, attributed to the rise in demand from overseas markets, such as India, and moderate supply in the country. Additionally, demand from the downstream Packaging and Electronics industries remained stable. The market was driven by the increased demand for the feedstock Polypropylene throughout the quarter.
Europe
During the first quarter of 2023, the European market witnessed a drop in BOPP Film prices due to a decline in the price of feedstock Polypropylene across Europe. The demand for this product from the downstream packaging industry reduced in January and February. However, in the last month of the quarter, the demand for BOPP Film increased under the influence of summer seasonal demand. Nevertheless, in the same month, the price of feedstock Polypropylene rose by approximately 4.8%, resulting in a 4% increase in the price of BOPP Film in the European market. In the first two months of the quarter, the supply of BOPP Film in the country remained high. However, the European market was affected the last month by a labor strike at the Port of Hamburg, Germany, which is the busiest in the country and the second busiest in Europe. As a result of the strike, the supply decreased, leading to a price hike.
For the Quarter Ending December 2022
North America
Biaxially oriented polypropylene (BOPP) film market sentiments declined in the USA during the third week of August. Adequate inventories and dwindling demand from the packaging and film industries kept the domestic BOPP Film market in a negative trend. Additionally, during that time, the cost of polypropylene feedstock declined, which reduced upstream expenses and caused a fall in the cost of BOPP Film. A sufficient supply flow and low-cost pressure further supported the product's price reduction on the local market. Consequently, the cost of BOPP Film 30 Micron for the assembly was USD 2391/MT FOB Texas for November, reporting a drop of 2.6%.
APAC
The Biaxially oriented polypropylene (BOPP) Film prices fell during Q4 in China. The price variation was mostly brought on by shifting feedstock costs and declining consumer demand. As this sector's demand has diminished, it has been noted that the packaging industry has been slow on the market. The BOPP Film 30-micron market was sluggish overall, with prices generally remaining around USD 1631/MT FOB Shanghai. However, BOPP film had found itself challenging since price increases could not keep pace as feedstock Polypropylene costs were declining alongside weakening local demand for BOPP film. Meanwhile, the impact of the coronavirus pandemic and low costs for crude oil and feedstock PP had considerably reduced production costs for BOPP Film.
Europe
BOPP Film market witnessed mixed sentiments in its market value amidst varying demand from the packaging industry with the growing requirement of packaging for foods and beverages. The rising e-commerce activities in the region, which require high-quality packaging materials, are also positively influencing the growth of films. Also, Europe struggled against rising production costs amidst volatile feedstock prices, and the manufacturers were compelled to hike their rates, looking through the rising demand. Therefore, the price for BOPP Film 30 micron hovered around USD 2923/MT FD Hamburg. Also, rising consumer awareness of packaging material has ultimately increased the demand for BOPP Film from downstream sectors.
For the Quarter Ending September 2022
North America
Due to weak demand from the downstream food and beverage packing industry, North America's BOPP (Biaxially Oriented Polypropylene) market declined during the third quarter of 2022. Adequate inventories and dwindling demand from the packaging and film industries kept the domestic BOPP Film market in a negative trend. Additionally, during the third quarter, the cost of polypropylene feedstock declined, which reduced upstream expenses and caused a fall in the manufacturing cost of BOPP Film. Meanwhile, a smooth supply flow and low-cost pressure further supported the product's price reduction on the domestic market. Towards the second half of Q3, production disruption and labor shortage weakened the market sentiments of BOPP Film prices backed by Hurricane Ian's impact on Florida.
APAC
The price of BOPP Film decreased by 1% to 3% during the first half of the third quarter, as weak upstream polypropylene feedstock prices during the first half led to a slight decrease in BOPP Film prices. Prices in the region were further driven down by reports of a slowdown in orders from downstream packaging industries and a surplus of regional product availability. Other Asian markets' demand enthusiasm remained subdued, and many foreign producers reportedly gave Chinese importers cheaper BOPP Film cargoes. In addition, low production in China has led to a supply crunch. However, the resurgence of COVID had mainly affected the operating rate as production units were allowed to work with reduced workers.
Europe
Biaxially oriented polypropylene (BOPP) Film market sentiments in Europe decreased during the third quarter. A downward trend in the domestic BOPP Film market was maintained by adequate stockpiles and declining demand from the packaging and film industries. In addition, the price of polypropylene feedstock fell during the quarter, decreasing upstream costs and the price of BOPP Film. While second half witnessed high energy prices in the domestic market, leading to the reduction in operating rates of BOPP Film manufacturing units. The demand from the packaging sector was also subdued as downstream consumers were reluctant to purchase in such a volatile market.
For the Quarter Ending June 2022
North America
Biaxially Oriented Polypropylene (BOPP) Film price in North America increased in the first half and then declined by 2% as the demand for the product varied thoroughly. Its prices remained robust for most of April, owing to solid demand for BOPP from the downstream food and beverage packing industries. Prices of feedstock propylene had also increased marginally due to the volatile crude oil prices. Moving inline, the price for BOPP declined in the latter half, as the commodity started accumulating and the offtakes from consumers remained dull as downstream producers were cautious about their manufacturing and purchase in the unpredictable market scenario. In addition, the market has also witnessed some volatility due to supply chain disruptions caused by logistics issues across North America.
APAC
In China, the Biaxially Oriented Polypropylene (BOPP) Film market declined throughout the second quarter. The production costs decreased due to the falling price of its feedstock polypropylene. The BOPP film industries also suffered from a lack of customer interest due to changes in crude oil prices, trade restrictions, currency shocks, and lockdown restrictions. Furthermore, various manufacturing factories were shut down due to the lockdown restriction in China, which slowed the demand for Food & Beverage Packaging, Medical Packaging, Personal Care Product Packaging, and Tamper Evident Films. In light of the variables mentioned above, the price of BOPP Film 30 micron decreased and hovered around USD 1696 /MT FOB Shanghai during June. In contrast, the Indian market for BOPP increased in the first half, which dipped by 4% in the second half. This could be justified owing to the uncertainty in its feedstock material which caused the downstream industries to operate cautiously, as demand for the product seemed dull in H2.
Europe
In Europe, Biaxially Oriented Polypropylene (BOPP) Film prices increased in the first half of Q2, and the prices reduced by 1% in June. Since the beginning of the Russia-Ukraine war, the market value for Crude oil has been volatile, affecting the prices of its feedstock, Propylene. The demand outlook for the product in the domestic market was strong enough to keep prices edging high. Later, with the improvement in the logistics issue and smooth supply of the product, the prices for BOPP Film declined, supported by sufficient stockpiling. Manufacturers also reported that declining feedstock Polypropylene prices have further contributed to the decreased cost pressure on BOPP Film production in the domestic market.
For the Quarter Ending March 2022
North America
The BOPP (Biaxially oriented polypropylene) market in North America remained firm due to stable demand from the downstream food and beverage packing industry. Upstream Polypropylene decreased in the first half of the quarter, which later rose by 6% in February due to high crude oil prices affecting the market of its derivative products. Further, in the later months of Q1 market witnessed some volatility due to the supply chain disruption caused by logistics issues amidst the Russia-Ukraine war making the prices firm in the domestic market. Therefore, with stability in its prices, the BOPP Film 30 Micron market settled at USD 2980 in the USA in Q1.
Asia Pacific
BOPP (Biaxially Oriented Polypropylene) witnessed consistent rise in prices since the beginning of Q1 due to the volatility in raw material values. Production rates and operational costs of various commodities, including that of feedstock Polypropylene, showcased an upward trajectory. Furthermore, downstream demand from the food packaging industry has been vital in the second half of Q1, pushing prices even higher in the domestic market. In China, prices of BOPP dipped in the first half of Q1 following low demand from the downstream packaging industry, whereas the price rose later with fluctuating upstream Polypropylene values. Demand from the domestic market was stable as the lockdown in the regional market affected the demand-supply chain causing the price for BOPP to stabilize in the later months of Q1. Therefore, prices for BOPP Film 30 Micron hovered at USD 1995 FOB Shanghai.
Europe
Driven by the war situation in the European countries, the BOPP (Biaxially Oriented Polypropylene) market saw a decline in its price trend in the first quarter. Polypropylene market fluctuated throughout the quarter due to the volatile crude oil prices and cuts in the shipping industry. From the demand side, the downstream packaging industry seemed sluggish, with low market sentiments in the regional market. Thus, low demand and fluctuating feedstock caused the price for BOPP Film 30 Micron to dip by 8% in March and settle at USD 2600 in Germany.
For the Quarter Ending December 2021
North America
Biaxially Oriented Polypropylene (BOPP) prices remained in excess of USD per 2000 throughout the last quarter owing to strong demand for BOPP from downstream food and beverage packing industry. BOPP are more versatile in characteristics than any other grade of polypropylene and therefore, BOPP has been consumed heavily across North American region for retail packaging. On Supply side, production of BOPP improved into the quarter which can also be induced from price deterioration throughout the quarter. BOPP prices started the quarter close to USD 2500 per MT mark however prices declined in November and December due to demand drop and improved production rate.
APAC
Discussions for BOPP (Biaxially Oriented Polypropylene) in the Indian domestic market remained firm throughout the quarter however its prices marginally dipped in December due to a sudden nosedive in prices of feedstock Propylene. Domestic manufacturers revealed that contrary to the market expectations the demand for BOPP has remained favourable even after the end of festive season in the country. BOPP Laminated film 36-micron prices were assessed at INR 262000 per MT Ex-Depot in December. In China, BOPP prices remained strong in the first half of the quarter where strong demand from food packaging sector kept an upward pressure on the available material. However, demand deteriorated in H2 of Q4 and consequently prices have fallen steeply and were assessed at USD 1330 per MT on FOB basis in late December.
Europe
BOPP market remained robust throughout the last although prices declined marginally towards the later stages of quarter. Biaxially Oriented Polypropylene demand continued to be consistent during Q4 stemming from stable volume intakes from downstream food packaging and other allied industries. Production remained robust as there were no scheduled and unscheduled maintenance in any of BOPP production plants. On the back of aforementioned factors, BOPP prices were assessed rangebound and were measured at USD 1735 per MT.
For the Quarter Ending September 2021
North America
In North America, BOPP Films demand outlook experienced a significant rise owing to the expansion in packaging industry. Moreover, after winter disruption in Q2, most of the industries rebound their production activities with full efficacy. In third quarter, BOPP Films gained tremendous values backed by the hike in prices of feedstock, high demand from downstream sectors, and curtailment in the production rates in mid-quarter because of the arrival of Ida Hurricane in US Gulf Coast. Most of the manufacturers were compelled to shut their production facilities ahead of the arrival of Ida as a part of an emergency plan that consequently effected the feedstock availability. Hence, an inflation in the pricing trend of BOPP Films was seen in Q3 supported by the escalating demand from packaging and construction industries.
Asia Pacific
In Q3 2021. Asian market witnessed a marginal rise in the values of BOPP. Surging demand from downstream sectors and hike in the prices of feedstock Polypropylene aided the overall price trend of BOPP Films. In China, Polypropylene market remained affected due to the “dual control policy” as many feedstock manufacturers curtailed their production rates. In addition, Shenhua Baotou based in China, imposed a turnaround at its Polypropylene plant unit in September for maintenance purpose. Hence, due to feedstock scarcity backed by lower production rates and tight import supplies from US due to Hurricane Ida, BOPP prices gained hike in China during this quarter. Similarly, Indian market also experienced a slight hike in the prices of BOPP Films as the offtakes from the domestic packaging sector witnessed an improvement. Moreover, rising values of feedstock Polypropylene also led to a hike in the prices of downstream products including BOPP Films. Therefore, EX-Mumbai BOPP Films prices stood at USD 2146.81/MT in September showcasing a marginal hike of USD 116.89/MT since July.
Europe
In Europe, supplies from the US remained tight due to the repercussion of Ida hurricane that consequently propelled the prices of BOPP film in Q3 2021. Moreover, extremely high freight charges and scarcity of containers along with delayed shipping timings extended the burden on European market. However, demand from the packaging industry remained firm throughout the quarter. Hence, constraint availability of feedstock Polypropylene amidst sturdy demand led to a spike in the prices of BOPP Films during this quarter in the European market.
For the Quarter Ending June 2021
North America
The supply conditions of BOPP films in North America improved compared to the previous quarter as the production levels regained pace after winter-storm disruptions. The availability of upstream Propylene was ample as refineries, crackers, and propane dehydrogenation (PDH) ramped up the operations. With majority of feedstock diverted towards the manufacturing of BOPP Films, the supplies were sufficient to meet the end use demand. Demand varied depending upon the industries, as the offtakes from the packaging industries were balanced and the enquiries from the construction sector surged with market rebound. However, the pricing trend in the North American region observed a proportional growth with the hike in demand.
Asia Pacific
The demand of the BOPP Film in the Asia Pacific region witnessed a significant growth as several nations started their industrial and commercial activities, which surged the offtakes from the downstream packaging sector. Despite the second COVID wave and partial lockdown in India the packaging industries reported consistent and normal operations during the first half of the quarter in India. Consequently, the pricing discussion observed a marginal downfall with Ex-Works Delhi settlements hovering around USD 2393 per tonne for 35-micron grade. Supplies showcased mixed sentiments in different parts of the APAC region as the market outlook in two major economies India and China differentiated from each other. In China due to the increased inflation rate prices of raw materials, the domestic BOPP film prices surged with upstream Propylene adding to the cost support.
Europe
BOPP film supplies in the European region improved during the second quarter of 2021, owing to better quantity of shipments from the North American region as the region recovered from the impact of winter storm Uri, whereas various plants ramped up the production of upstream PP. However, amidst the Suez Canal blockage imports were delayed in early in the quarter. Italy’s BOPP market showed fall in activity on month-o-month basis as the manufacturers were reluctant to procure the high-cost raw material. Demand outlook in the regional market was mainly focused over the construction and packaging sector.
For the Quarter Ending March 2021
North America
While the American BOPP film producers remained occupied with strong market enquiries, the producers remained largely concerned over tight Propylene and Polypropylene supplies. The production levels were hampered after tight feedstock supplies were reported due to unplanned shutdown of the various chemicals and petrochemical facilities in the US Gulf region as the severe freeze weather conditions limited the availability of required feedstock and disrupted logistics. The demand maintained a healthy status from the downstream packaging sector, however the supply-demand gap widened which resulted in enormous spike in prices of BOPP films in the North American region.
Asia-Pacific (APAC)
In Asia Pacific, during Q1 2021, the BOPP film market remained balanced in the northeast Asian region, due to ample supply of the upstream and feedstock chemicals crediting to the commissioning of new facilities in China. However, raw material shortage coupled with the consistent demand from the food packaging and e-commerce sector continued to drive the BOPP price curve in the Indian market. The uptrend was strongly attributed to strong PP prices which skyrocketed by around 20 percent while packaging film prices jumped by around 25 percent in India during the quarter. The cost pressure from the feedstock compelled market players to induce a positive revision in BOPP film prices during the quarter.
Europe
During the first quarter, the supplies of feedstock PP remained tight owing to planned and unplanned shutdowns in the upstream plants in Northwest region, followed by the decline in imports from US amid unprecedented cold weather conditions which hit the global supply. The widening of supply demand gap surged the spot prices of BOPP in the region which and increased feedstock imports from the Asian players. Demand outlook was robus from the downstream packaging sector.
For the Quarter Ending December 2020
North America
Supplies remained tight, during the first half of the Q4 of 2020, due to the disruption caused by the spate of hurricanes along the Gulf region. In early November, hurricane caused the power disruptions which led to the production cut as the major plants in the region declared force majeure. However, the supplies improved by the second half of the last quarter. The demand remained strong during the final quarter as the demand from the food-packaging and constructions sector considerably improved.
Asia-Pacific
During the fourth quarter of 2020, supplies of BOPP remained marginally tight, as the crude oil production was reduced by the OPEC nations while its demand bolstered in the region due to ease in the restrictions following the resumption of industrial and commercial activities. The demand in the Q4 picked up from due to the festive seasons. The widened demand and supply gap led to a constant surge in the prices of BOPP, which were further supported by the supply constraints due to the plant outages by the end of the quarter. Meanwhile BOPP prices the prices in the Indian market remained in range of USD 1813 – 3100/tonne film grade in the quarter ending December.
Europe
Supplies remained in a stable to firm range in Q4 of 2020 as the concerns of new wave of coronavirus led to a surge in the consumption of BOPP from the food and packaging sector as the people preferred to purchase packed items to safeguard themselves from the spread. Thus, the production cut on the crude extraction from the OPEC and limited trade amid the reduced shipping availability resulted in increased prices of BOPP in the region.
