China's Biaxially Oriented Polypropylene (BOPP film) market closed June with bullish momentum considering thin inventories and consistent restocking in converting hubs. Beyond near-term demand, increasing interest in biodegradable BOPP film and localization gains at domestic facilities indicated deeper structural resilience. Despite international freight and energy uncertainty, Chinese makers stayed competitive on APAC exports.
China's BOPP film market ended June on a firm note, recording three consecutive weeks of improvement based on solid demand and favorable policy measures. In the third week, BOPP film prices rose by 0.64%, indicating solid FMCG sector demand and rising consumer confidence. This positive trend further gathered momentum during the fourth and last weeks, with overall gains registering more than 2.7% during the period through June.
A major driver of the latter-month rise was the Chinese government releasing CNY 162 billion worth of consumer subsidies, which spurred e-commerce and packaging demand. This support was complemented by increases in retail sales, which were up 6.4% year-on-year, and growing manufacturing output. Consistent demand from packaged food, personal care, and home care industries supported the market to weather cost volatility despite fluctuations in feedstock polypropylene values during the month.
In a significant development, Dow introduced its INNATE TF 220 resin in the last week of June, which is intended for premium performance in flexible films. Dow also collaborated with Liby to develop packaging with recycled content, reflecting a move towards innovation and sustainability in China's packaging sector. These developments in products are likely to affect BOPP film converters and brand owners looking for higher-performance, sustainable solutions.
Logistics was the biggest problem, though. Dense fog and poor weather prolonged port closures at northern terminals by 4 to 17 hours. The Shanghai-Ningbo corridor vessel queue increased from 134 to 150 ships over the last two weeks of the month, with exports to Thailand, Mexico, the Philippines, and Japan being held up.
Despite this, BOPP film export held firm, especially from the APAC and South American regions, where robust packaging demand and supply-tight conditions maintained the bullish tone. The Exponential Moving Average (EMA) also rose, validating a structural recovery in the market as China's BOPP film market enters Q3 in momentum.
ChemAnalyst anticipates, China's BOPP film market to stay firmly placed next week, underpinned by steady downstream demand and robust export momentum. Nevertheless, ongoing port congestion and high vessel queue may slow down BOPP film deliveries and further tighten supply. In view of improving manufacturing sentiment and packaging innovation, market participants should be upbeat in their stance, while looking closely at logistics disruptions and local competition.
