For the Quarter Ending December 2024
North America
In the fourth quarter of 2024, BOPP (Biaxially Oriented Polypropylene) film prices in the USA saw a noticeable decrease, reflecting a combination of market trends and seasonal factors. The slowdown in demand ahead of the New Year contributed significantly to this price reduction. As businesses, particularly in packaging and consumer goods sectors, wound down for the holidays, purchasing activity slowed, leading to reduced pressure on prices.
The New Year sales period also played a role, as companies were more focused on inventory management rather than large-scale purchasing. While the holiday season traditionally sees some increase in consumer demand, the push for BOPP films remained moderate as industries prioritized stock replenishment and cost-efficiency.
On the supply side, the US saw steady imports of BOPP films from international markets, including Asia, where production remained strong. Increased global supply, coupled with stabilizing or lower raw material costs, allowed manufacturers to adjust prices competitively. Domestic manufacturers were also able to maintain production levels without facing significant raw material price hikes, which helped support a favorable pricing environment.
In summary, reduced demand in the lead-up to New Year sales, combined with increased global supply, contributed to the decrease in BOPP film prices in the USA during the fourth quarter of 2024. At the end of Quartet BOPP Film 30 Micron was settled at USD 2276/MT on a DEL Louisiana basis.
APAC
In the fourth quarter of 2024, BOPP (Biaxially Oriented Polypropylene) film prices in Asia experienced a notable decline. This decrease can be attributed to several factors, including reduced demand following the peak season and increased supply across major manufacturing hubs. The approach of the New Year typically sees a slowdown in purchasing activity, as many industries prepare for the holiday season or adjust their production schedules. As a result, the demand for BOPP films softened, leading to price adjustments in the market.
In addition to this seasonal trend, increased production capacity from key Asian producers contributed to higher supply levels. Manufacturers, eager to meet global demand, maintained a steady output, further balancing market dynamics and exerting downward pressure on prices.
New Year sales in various sectors, particularly in packaging and consumer goods, also played a role in influencing BOPP film demand. While the holiday season brings some growth in sales, it is often a period of inventory replenishment and stock optimization rather than substantial growth. This combination of reduced demand and increased supply created a market environment where BOPP film prices were lower as manufacturers adjusted to a more balanced, albeit slower, market.
Europe
In the fourth quarter of 2024, BOPP (Biaxially Oriented Polypropylene) film prices in Europe saw a decline, driven by several key factors. The seasonal slowdown typically observed during the end of the year played a major role, with many industries, including packaging and consumer goods, reducing their activity ahead of the holiday period. This reduction in demand, especially as businesses adjusted inventories for the New Year, led to softer price levels.
The New Year sales period also contributed to the dip in prices. While sales promotions and increased consumer spending are common during this time, the demand for BOPP films remained stable, as companies focused on meeting their stock requirements rather than pursuing significant new orders. As a result, the pressure on prices to rise was limited.
On the supply side, European manufacturers faced competitive global pressures, with supply chains from Asia remaining strong and even increasing in capacity. This higher availability of BOPP films in the market, combined with stable to declining raw material prices, provided manufacturers with flexibility, enabling them to offer more competitive pricing.
Ultimately, the combination of lower seasonal demand, cautious New Year sales expectations, and increased supply contributed to the decrease in BOPP film prices in Europe during the fourth quarter of 2024.
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.
