Plastic Particles News

At present, there is no clear judgment on the post festival market of BOPP, mainly based on the following considerations:

1. The uncertainty of the actual start-up and shut-down of BOPP plants during the Spring Festival.

2. Although BOPP enterprises have annual orders in succession three weeks before the festival, according to the feedback of the production enterprises, most of their downstream users are not enthusiastic about preparing goods before the festival, and the annual orders are mostly concentrated on thin gloss film, extinction film, heat sealing film and bag making film.

3. The pre-sale of raw PP before the festival is OK, but the speed of downstream delivery after the festival is uncertain, that is, the speed of petrochemical inventory falling after the Spring Festival accumulation.

4. Under the influence of public health events, the actual implementation of the policy of "Celebrating the Chinese new year on the spot" in 2021 Spring Festival will affect the downstream demand during the Spring Festival and at the beginning of the Spring Festival.

5. At present, the processing cost of BOPP thick gloss film and raw materials is around 2000 yuan / ton. If the demand follow-up is not smooth, the compressed space is limited; but the price difference between other films, such as 18, 15, 12, 10 gloss film and extinction film, heat sealing film and pearlescent film, and thick gloss film has not recovered to the level before October 2020. This situation will also affect the price changes of BOPP after the Spring Festival.

So after the Spring Festival, BOPP market can rise or fall at present. The bullish mentality mainly comes from the fact that although the downstream users have replenished the stock before the festival, most of them still have not followed up, and there may be rigid demand support after the festival; the bearish mentality mainly considers that the actual start-up situation of enterprises is higher than expected, which leads to the rapid delivery of post Festival orders, plus the worry of inventory reduction and profit transfer after the stock accumulation of raw materials during the festival.

There are still many uncertain factors in the judgment of BOPP's return after the festival, but in the medium and long term after the festival, the probability of BOPP's return to lower the market is large. Adjusting the processing fee and narrowing the price difference between various types of films are still the mainstream keynote of BOPP market in the first quarter.