Weak Demand is Deteriorating the BOPP Film Prices in the Global Market

Texas, USA: In the USA, one of the most traded packaging materials, Biaxially Oriented Polypropylene (BOPP) Film, has seen significant price drops as of late September 2022 compared to the beginning of this month due to the decrease in feedstock Polypropylene prices and weak demand from the packaging sector.

BOPP Film's trade activities were lackluster as feeble demand continued for various reasons, such as the slowing global economy, ongoing overproduction, and more fragile consumer confidence. Prices of Polypropylene, a feedstock for BOPP Film, have also been decreasing. Meanwhile, the unpredictable hurricane season is causing the producers in North America to restock their inventories. The restocking process was mainly in the expectation of high demand, but the demand from the packaging sector was stifled, leading to high inventory in the region. Thus, as of the ChemAnalyst database, BOPP Film price in the USA declined by 4% on a weekly basis.

European market witnesses a slow recovery in the BOPP Film demand because of the natural gas shortage. Packaging manufacturers are adopting a 50% reduction in plastic packaging and a 90% rate of recycling to cater to the high energy prices and reduce the consumption of oil and gas.

At the same time, BOPP Film prices in Asia have witnessed a stable to marginal rise, triggered by stable upstream polymer grade propylene values and sufficient product availability in the region. As China's COVID lockdowns disrupted production and dampened sales, the global demand for Chinese goods also weighed heavily on the manufacturing sector. Although the COVID situation in China has improved, supply and demand remain constrained by containment measures. Currently, the economy faces significant issues due to the lack of employment, slow demand, and uncertain expectations. These factors were expected to be the primary cause of stability in BOPP Film prices in China.

According to ChemAnalyst forecast, "The Price for Biaxially Oriented Polypropylene (BOPP) Film may see slight decrement in the coming weeks as high inventories amidst the uncertainty of hurricane season in the USA may suppress the overall demand in the domestic market. However, with demand still sluggish in the global market, BOPP Film prices are expected to remain low."