China's BOEPT film market came under sustained pressure during late June 2026, with BOEPT film prices declining by 4.3% amid weakening production costs, abundant supply, and sluggish downstream buying activity. The downturn was primarily driven by a 7.2% fall in feedstock PET prices, which significantly reduced manufacturing costs and prompted producers to successively lower their offers to remain competitive. At the same time, demand remained subdued across key downstream sectors, export inquiries slowed, and rising inventories created additional pressure on the domestic BOEPT film market.
The decline in BOEPT film prices closely tracked the sharp correction in feedstock PET values. During the second half of June, easing geopolitical tensions between the United States and Iran led to the lifting of maritime blockades, eliminating concerns over potential disruptions through the Strait of Hormuz. As the geopolitical risk premium disappeared from crude oil markets, international oil prices retreated, reducing polyester raw material costs across the supply chain. With production expenses falling rapidly, BOEPT film manufacturers were compelled to reduce quotations in line with the changing cost structure.
PET market fundamentals also turned increasingly bearish during the period. Trading across domestic chemical markets became volatile as crude oil prices shifted back to supply-demand fundamentals rather than geopolitical concerns. Meanwhile, the domestic capacity utilization rate for PET bottle chips increased from 71% to 71.9% following the restart of maintenance-shut facilities. In addition, Shaoxing Tiansheng's newly commissioned 200,000-ton production capacity continued ramping up output, while finished product inventories rose to more than nine days of supply. The improving feedstock availability further weakened cost support for BOEPT film producers.
Supply-side pressure intensified further with the expansion of domestic BOEPT film production capacity. Yangzhou Boheng New Energy Materials Technology Co., Ltd. successfully commissioned its second production line on April 30, with the facility reaching full operational capacity in May. The additional production significantly increased overall market availability, leaving manufacturers competing aggressively for limited orders. As inventories accumulated, producers faced growing difficulties in clearing stocks, encouraging further price reductions to stimulate sales.
Demand conditions remained weak throughout late June. Consumption of BOEPT film from downstream packaging, printing, lamination, electronics industries stayed limited, with buyers purchasing only to meet immediate production needs. Fewer inquiries, declining purchasing enthusiasm, and scarce new orders resulted in a subdued trading atmosphere. Export order inquiries also slowed, further restricting sales opportunities and adding to inventory pressure across domestic manufacturers.
According to Chemanalyst data, the BOEPT film market is expected to remain under pressure during July. Supply availability is likely to stay comfortable following recent capacity additions, while downstream procurement is expected to remain driven by essential demand only.
