For the Quarter Ending June 2021
The supply conditions of BOPP films in North America improved compared to the previous quarter as the production levels regained pace after winter-storm disruptions. The availability of upstream Propylene was ample as refineries, crackers, and propane dehydrogenation (PDH) ramped up the operations. With majority of feedstock diverted towards the manufacturing of BOPP Films, the supplies were sufficient to meet the end use demand. Demand varied depending upon the industries, as the offtakes from the packaging industries were balanced and the enquiries from the construction sector surged with market rebound. However, the pricing trend in the North American region observed a proportional growth with the hike in demand.
The demand of the BOPP Film in the Asia Pacific region witnessed a significant growth as several nations started their industrial and commercial activities, which surged the offtakes from the downstream packaging sector. Despite the second COVID wave and partial lockdown in India the packaging industries reported consistent and normal operations during the first half of the quarter in India. Consequently, the pricing discussion observed a marginal downfall with Ex-Works Delhi settlements hovering around USD 2393 per tonne for 35-micron grade. Supplies showcased mixed sentiments in different parts of the APAC region as the market outlook in two major economies India and China differentiated from each other. In China due to the increased inflation rate prices of raw materials, the domestic BOPP film prices surged with upstream Propylene adding to the cost support.
BOPP film supplies in the European region improved during the second quarter of 2021, owing to better quantity of shipments from the North American region as the region recovered from the impact of winter storm Uri, whereas various plants ramped up the production of upstream PP. However, amidst the Suez Canal blockage imports were delayed in early in the quarter. Italy’s BOPP market showed fall in activity on month-o-month basis as the manufacturers were reluctant to procure the high-cost raw material. Demand outlook in the regional market was mainly focused over the construction and packaging sector.
For the Quarter Ending March 2021
While the American BOPP film producers remained occupied with strong market enquiries, the producers remained largely concerned over tight Propylene and Polypropylene supplies. The production levels were hampered after tight feedstock supplies were reported due to unplanned shutdown of the various chemicals and petrochemical facilities in the US Gulf region as the severe freeze weather conditions limited the availability of required feedstock and disrupted logistics. The demand maintained a healthy status from the downstream packaging sector, however the supply-demand gap widened which resulted in enormous spike in prices of BOPP films in the North American region.
In Asia Pacific, during Q1 2021, the BOPP film market remained balanced in the northeast Asian region, due to ample supply of the upstream and feedstock chemicals crediting to the commissioning of new facilities in China. However, raw material shortage coupled with the consistent demand from the food packaging and e-commerce sector continued to drive the BOPP price curve in the Indian market. The uptrend was strongly attributed to strong PP prices which skyrocketed by around 20 percent while packaging film prices jumped by around 25 percent in India during the quarter. The cost pressure from the feedstock compelled market players to induce a positive revision in BOPP film prices during the quarter.
During the first quarter, the supplies of feedstock PP remained tight owing to planned and unplanned shutdowns in the upstream plants in Northwest region, followed by the decline in imports from US amid unprecedented cold weather conditions which hit the global supply. The widening of supply demand gap surged the spot prices of BOPP in the region which and increased feedstock imports from the Asian players. Demand outlook was robus from the downstream packaging sector.
For the Quarter Ending December 2020
During the fourth quarter of 2020, supplies of BOPP remained marginally tight, as the crude oil production was reduced by the OPEC nations while its demand bolstered in the region due to ease in the restrictions following the resumption of industrial and commercial activities. The demand in the Q4 picked up from due to the festive seasons. The widened demand and supply gap led to a constant surge in the prices of BOPP, which were further supported by the supply constraints due to the plant outages by the end of the quarter. Meanwhile BOPP prices the prices in the Indian market remained in range of USD 1813 – 3100/tonne film grade in the quarter ending December.
Supplies remained in a stable to firm range in Q4 of 2020 as the concerns of new wave of coronavirus led to a surge in the consumption of BOPP from the food and packaging sector as the people preferred to purchase packed items to safeguard themselves from the spread. Thus, the production cut on the crude extraction from the OPEC and limited trade amid the reduced shipping availability resulted in increased prices of BOPP in the region.
Supplies remained tight, during the first half of the Q4 of 2020, due to the disruption caused by the spate of hurricanes along the Gulf region. In early November, hurricane caused the power disruptions which led to the production cut as the major plants in the region declared force majeure. However, the supplies improved by the second half of the last quarter. The demand remained strong during the final quarter as the demand from the food-packaging and constructions sector considerably improved.