Price: BOPP rose more and fell less in the first half of the year, rising first and then falling
In the first half of 2022, The price of BOPP in China rose first and then fell, with short rising time and long falling time. From January to June, the price of BOPP thick light film was 10,650-11900 yuan/ton, and the average price was 10,975 yuan/ton, 54 yuan/ton lower than the same period last year. The price peak appeared in early March, and the price low appeared at the end of June.
In the first half of the year, the three increases occurred respectively in the beginning of the Spring Festival return, early March and late May and early June. The first and third price increases are driven by costs: the Spring Festival returns, raw material polypropylene futures rise to drive spot, coupled with the market news on the first day after the festival is not clear, BOPP price increases with raw materials; The latest rise was also driven by cost. At the end of May and the beginning of June, in the context of a wide rise in crude oil, polypropylene futures increased significantly, and spot prices followed. The cost pushed BOPP prices up again. The second price rise was driven by both cost and demand, and the double factors pushed BOPP up by the largest margin in the first half of the year. In March, the BOPP market was in the period when the rigid demand recovered after the Spring Festival. The market demand recovered one after another, and the price of BOPP increased driven by the rise of raw material polypropylene. The price of thick light film rose by 800 yuan/ton from 11100 yuan/ton to 11900 yuan/ton in just 7 working days, or 7.21%, creating the largest increase in the first half of the year. Other times, the BOPP market is in the atmosphere of poor demand drag, even if there is a recovery in the cost end during the period, but the extent is not enough to boost the BOPP market. Overall, BOPP prices fell more than rose in the first half of the year
Compared with the historical five-year data, the average monthly PRICE of BOPP in the first half of 2022 is at the highest level in the historical five-year period.
Profit: BOPP’s profit in the first half of the year gradually narrowed
In the first half of 2022, BOPP profit space gradually narrowed: according to zhuochuang Information, BOPP profit in the first half of the year was 475-1265 yuan/ton, with an average profit of 793 yuan/ton, 14 yuan/ton higher than the same period last year; The average profit in the first quarter was 954 yuan/ton, and the average profit in the second quarter was 638 yuan/ton.
BOPP follows the general trend of raw material adjustment, and the demand performance of BOPP in the first half of 2022 is poor. Except for the release of rigid demand in early March, BOPP’s performance in the rest of the year is flat, so the profit margin is stable and slightly narrowed. It can also be seen from Figure 3 that BOPP profit maintained a relatively high level in the first quarter and fluctuated around 500 yuan/ton after narrowing in the second quarter.
Supply: not much new production in the first half of the year, the start-up load rate is still capacity
According to zhuochuang Information statistics, in the first half of 2022, the BOPP industry added 2 production lines and restarted 2 old lines, which happened in January and May. The new production line is located on tape film, bag-making film, extinction film and synthetic paper. Restarting the production line involves the transfer of old lines and relocation of enterprises. As of June 2022, China’s BOPP industry has a total production capacity of 6,969,500 tons.
Starting load rate & output
Construction load rate, BOPP industry started in the first half of 2022 rate in the five-year average deviation on the history of the position more, during the Spring Festival starts basic maintain normal load rate also, cut: in April 2021, has accumulated orders before the Spring Festival, overlay under the limited market demand expected after the Spring Festival, during the Spring Festival BOPP enterprises maintain normal work load level; In April, the load rate declined, mainly because of force majeure in some parts of East China.