For the Quarter Ending September 2024
North America
In Q3 2024, the North American BOPP film market experienced a gradual month-on-month decline due to several factors. Reduced demand from downstream industries, logistical challenges, and uncertainty in deliveries significantly impacted prices. In July, the cost of BOPP improved compared to August, driven by a notable increase in feedstock PP prices in the American market. However, in the subsequent months, costs began to decline, which supported the BOPP market in terms of production expenses.
In Mexico, the market experienced the most significant price changes, reflecting the overall negative sentiment. Seasonal factors and global economic conditions also contributed to the price decline. The correlation in price changes indicated a strong downward trajectory, with a notable 5% decrease from the previous quarter.
The second half of the quarter saw a further decrease of 2% from the first half, highlighting the continued negative trend. The quarter-ending price of USD 2540/MT of BOPP Film 30 Micron CFR Manzanillo in Mexico encapsulates the prevailing negative pricing environment in the region.
APAC
In the APAC region, the third quarter of 2024 has been characterized by a decline in prices for BOPP Film, influenced by several significant factors. Weak demand from downstream industries, particularly in the packaging sector, has played a pivotal role in driving prices down. Additionally, the market has seen a surplus of feedstock, leading to a decrease in cost for BOPP production. The Mid-Autumn Festival holidays further dampened trading activities, contributing to the overall bearish sentiment in the market. Downstream enterprises have not shown signs of improvement in demand, with mostly just in demand replenishment, insufficient demand, flat trading, low transaction volume, and a wait-and-see attitude. Purchasing intentions are not high, and market demand has weak support for prices. Comparing to the previous quarter in 2024, there was a -2% decline, with the second half of the quarter experiencing a further -3% drop in prices. The quarter-ending price for BOPP Film 30 Micron FOB Shanghai in China stood at USD 1320/MT, reflecting the prevailing negative pricing environment. Overall, the pricing trends in the region have been predominantly negative, marked by a consistent decrease in prices driven by subdued demand and ample supply.
Europe
In Q3 2024, the Europe region experienced an increase in BOPP Film prices, driven by significant factors influencing market dynamics. The rise in feedstock PP costs exerted upward pressure on prices, despite subdued demand from the downstream packaging sector. Global crude oil prices also played a role, with geopolitical tensions and summer fuel consumption optimism contributing to the overall price trend. New export orders continued falling at a marked pace, albeit one that was slightly slower than in June and weaker than the decline in total new business. Germany, in particular, witnessed the most substantial price changes, reflecting the broader market conditions. Comparing to the previous quarter in 2024, prices dropped by 1%, showcasing fluctuations in pricing trends. However, within the quarter, prices increased by 1% between the first and second half, highlighting a changing market sentiment. The quarter-ending price for BOPP Film 30 Micron FD Hamburg in Germany stood at USD 2675/MT, signaling a consistent increase in pricing. The pricing environment in Q3 2024 for BOPP Film in Germany remained positive, reflecting the overall upward trend in market prices.
MEA
Throughout Q3 2024, the market for BOPP Film in the MEA region has maintained a stable pricing environment. Several factors have contributed to this stability, including balanced supply and demand dynamics, moderate production levels, and consistent feedstock costs. The overall market sentiment has been influenced by sluggish demand from downstream sectors, leading to a lack of significant price fluctuations. In the case of Saudi Arabia, which has experienced the most price changes in the region, the pricing trends have mirrored the broader MEA market. Moreover, the percentage change from the previous quarter in 2024 has been recorded at 0%, reflecting a stable pricing trend. Additionally, the comparison between the first and second half of the quarter 3 has shown no significant price variations. As Q3 comes to a close, the latest quarter-ending price stands at USD 1760/MT for BOPP Film 30 Micron (Spot) Ex-Al Jubail in Saudi Arabia, highlighting a continuation of the stable pricing environment observed throughout the quarter.
South America
In Q3 2024, the South American BOPP film market experienced a gradual month-on-month decline due to several factors. Several factors contributed to this decline, including sluggish demand from downstream industries, logistical challenges, and uncertainties in deliveries. The balance between supply and demand played a crucial role in maintaining price stability. Brazil, in particular, witnessed significant price changes, with prices decreasing by 5% compared to the previous quarter. Seasonal factors, such as reduced demand during the winter season, further impacted pricing dynamics. Industries faced challenges from hurricanes, which disrupted the supply chain, while weak orders from the overseas market also contributed to price volatility. There has been no improvement in orders, leading to a focus on meeting only normal start-up requirements. The correlation between price changes in the first and second half of the quarter was negative, emphasizing the overall downward trajectory. The quarter-ending price of USD 2560/MT of BOPP Film 30 Micron CFR Santos in Brazil symbolizes the prevailing negative sentiment in the pricing environment.
For the Quarter Ending June 2024
North America
The price of BOPP Film in the North American region exhibited a stable to increasing trend throughout the second quarter of 2024. In the initial two months, the cost remained steady, and then it rose due to an improvement in feedstock prices. This upward trajectory can be attributed to several pivotal factors, predominantly led by heightened feedstock polypropylene costs and aggravated logistics issues, such as elevated freight charges and transportation disruptions. Additionally, the volatility in crude oil prices has exacerbated the cost pressure on raw materials, further bolstering the price of BOPP films. The observed tight vessel space availability has constrained supply chains, driving up costs and influencing market prices.
Focusing on the USA, where the price changes have been most pronounced, the BOPP film market has experienced a consistent upward trend. The seasonal demand in the second quarter, typically peaking for plastic finished goods, combined with high-cost pressures from feedstock polypropylene, has reinforced this price elevation. Compared to the same quarter last year, prices surged by 8%, reflecting an intensifying market environment. However, the price increment remained at a 0% change from the previous quarter, indicating a steady climb in costs from an already elevated starting point.
The first and second halves of the quarter also saw a 7% price increase, underscoring the persistent upward pressure on BOPP film prices. Conclusively, the quarter ended with the price of BOPP Film 30 Micron DEL Louisiana at USD 2436/MT, encapsulating the bullish sentiment throughout this period. Despite facing logistical and supply chain challenges, the pricing environment for BOPP films in the USA has been decidedly positive, driven by sustained feedstock cost pressures and robust seasonal demand.
APAC
In Q2 2024, the BOPP Film market in the APAC region experienced a consistent upward trend in pricing. This quarter has been marked by several significant factors influencing market prices. The primary catalyst for this surge has been the escalating costs of upstream raw materials like propane and propylene, driven by strong buying trends and volatility in crude oil prices. Higher feedstock prices have exerted considerable cost pressure, compelling manufacturers to elevate BOPP Film prices. Additionally, tight vessel space availability has augmented freight charges, further contributing to the overall price increase. The manufacturing sector's robust performance, as indicated by strong Purchasing Managers' Index (PMI) figures, has also played a pivotal role in sustaining high demand for BOPP Film, particularly in the packaging industry.
Focusing on South Korea, which has witnessed the most significant price changes in the region, the overall sentiment has been positive. The market displayed a clear seasonal trend, with price increases correlating with heightened demand during peak production periods. The price of BOPP Film in South Korea showed a 3% increase from the previous quarter of 2024, despite a -5% change when compared to the same quarter last year. This fluctuation underscores the volatility and recovery from a lower base in 2023. Within Q2, the price difference between the first and second half of the quarter was recorded at 1%, indicating a steady upward trajectory as market conditions became more favorable. Conclusively, the quarter ended with BOPP Film 30 Micron FOB Busan priced at USD 1680/MT, reflecting the overall positive pricing environment. The combination of high feedstock costs, increased freight charges, and robust manufacturing demand has driven this upward trend, establishing a stable yet increasingly favorable market for BOPP Film in South Korea.
Europe
In Q2 2024, the BOPP Film market in Europe has experienced a noticeable downturn, largely driven by weak demand from downstream packaging industries and an oversupply of materials. Significant factors influencing market prices include persistently low production costs due to reduced feedstock Propylene and crude oil prices, coupled with lackluster purchasing activity. The European market's shift towards sustainable packaging solutions and eco-friendly alternatives has further dampened demand for traditional BOPP films, exerting downward pressure on prices.
Germany, in particular, has witnessed the most substantial price changes. The overall trend in Germany has been characterized by a combination of reduced consumer spending, sluggish economic growth, and the influx of delayed import cargoes, leading to an oversupply scenario. Seasonality has played a role, with manufacturers ramping up production in anticipation of increased summer demand, only to face continued weak demand, thus exacerbating the supply surplus. The correlation in price changes has also been influenced by competitive pricing strategies from suppliers aiming to clear summer inventories, which has further pressured prices.
When comparing the year-over-year change, BOPP Film prices have declined by 1%, while the quarter-over-quarter change from Q1 2024 shows a more pronounced decrease of 3%. Within Q2, a notable price drop of 4% between the first and second halves of the quarter underscores the declining sentiment in the market. Concluding the analysis, the quarter-ending price for BOPP Film 30 Micron FD Hamburg in Germany stands at USD 2655/MT.
MEA
In Q2 2024, the BOPP Film market in the MEA region exhibited a largely stable pricing environment. This period has seen a consistent balance between supply and demand, driven by several critical factors. A significant contributor to this stability has been the ample availability of BOPP Film, ensuring that manufacturers and traders maintain steady supply levels. Additionally, the low demand from downstream industries, particularly the packaging and labeling sectors, has played a crucial role in preventing price volatility. The tepid purchasing activity, marked by cautious stocking and a focus on depleting existing inventories, further corroborated this trend.
Focusing exclusively on Saudi Arabia, which experienced the most notable price changes, the overall trend remained stable. Seasonality did not significantly impact the market, and the correlation in price changes reflected this equilibrium. Compared to the same quarter last year, there was a 6% price increase, indicating a moderate but steady rise in value. From the previous quarter in 2024, prices saw a 3% uptick, reinforcing the stability theme. Interestingly, the price comparison between the first and second half of the quarter showed a 0% change, underscoring the market's steadiness.
The quarter-ending price for BOPP Film 30 Micron (Spot) Ex-Al Jubail in Saudi Arabia stood at USD 1770/MT. The stable pricing environment has been positive for market predictability, though it reflects a tepid demand scenario.
For the Quarter Ending March 2024
North America
The BOPP Film market in North America continued to experience price volatility in the first quarter of 2024. Several factors contributed to these fluctuations. Firstly, the global supply chain continued to face challenges, including shipping delays and ongoing conflicts in the Red Sea, which disrupted the supply of BOPP Film. Secondly, the downstream packaging industry still witnessed weak demand due to reduced order volumes and insufficient market demand. Lastly, the cost of the product was still impacted by expensive raw material prices and the volatility of crude oil prices.
In Mexico, prices for BOPP Film further declined by 7% compared to the previous quarter, with an additional 3% decrease in the second half of Q4 2023. However, despite these fluctuations, the correlation price percentage of Mexico remained stable due to the average demand for BOPP Film.
Overall, the BOPP Film market in North America continued to face challenges in the first quarter of 2024, with an unstable global supply chain and weak downstream demand. These factors resulted in price fluctuations during this period. Additionally, the market experienced multiple shutdowns, further contributing to the disruptions in the industry.
APAC
During the first quarter of 2024, the BOPP Film market in the APAC region demonstrated stability, buoyed by various contributing factors. Factors such as reduced demand from downstream industries, ample product availability, and extended delivery durations played pivotal roles in shaping market dynamics. Particularly noteworthy were the significant shifts in BOPP film prices observed in South Korea, where prices exhibited a steady seasonal pattern throughout the quarter. The growth in demand lagged increases in production, leading to sufficient existing capacity to absorb additional orders, resulting in a slight decrease in backlogs of work. Analysis of correlation price percentages revealed a coherent movement in prices. Compared to the corresponding period last year, the market witnessed an adverse percentage change of 11%; however, there was a 4% positive shift from the previous quarter. Moreover, a marginal 2% price comparison was noted between the first and second halves of the quarter. Price fluctuations primarily stemmed from supplier underperformance and prolonged input delivery schedules, accentuating market volatility.
Europe
In the European region, the cost of BOPP Film remained elevated in Q1 2024, primarily due to the persistent high-cost pressure stemming from Polypropylene (PP) feedstock. Specifically, in March 2024, the prices of Polypropylene surged by around 9%, significantly impacting various downstream derivative sectors, particularly the BOPP Film market. Throughout the first quarter of 2024, European Polypropylene (PP) prices exhibited a consistent upward trajectory, primarily fueled by the persistent scarcity in supply. Additionally, logistical challenges and material constraints have further strained the supply chain, ultimately amplifying the upward pressure on prices. Conversely, the demand side of the market has also played a significant role in propelling prices upwards. Despite the supply challenges, demand fundamentals have remained robust for PP, further intensifying the upward price momentum. However, sentiments within the packaging film industry saw a decline, primarily influenced by prevailing economic factors. This downturn in sentiment translated into a more cautious approach among consumers and businesses, leading to purchasing activities being primarily driven by immediate needs.
MEA
In Saudi Arabia, BOPP prices saw a significant rise since the onset of 2024, largely driven by a surge in the primary feedstock, Polypropylene (PP), during Q1. This spike in PP prices had a pronounced effect on downstream derivative sectors. Compared to the previous quarter, there was a substantial 14% increase in BOPP prices. Within the quarter, a 4% price difference was observed between the first and second halves. However, disruptions in input freight arrivals, stemming from the Red Sea shipping crisis, posed challenges to business operations. These disruptions led to extended delivery times and contributed to the poorest supplier performance reported in a year. Furthermore, the tight supply of the product further compounded this price trend, indicating a complex interplay of factors influencing the market dynamics. Moreover, the downstream packaging sector maintained an average performance, with merchants adopting a strategy of procuring materials strictly based on immediate needs. By the end of the quarter, the price for BOPP had stabilized at USD 1775 per metric ton on an Ex-Al Jubail basis.
For the Quarter Ending December 2023
North America
The North American BOPP Film market witnessed to a bearish market situation with moderate supply and demand from the downstream packaging sector of FMCG industries. The prime reason for the declination in prices is attributed to the continued effect of declining prices of feedstock Polypropylene overall fourth quarter compared to previous quarter.
The demand for exports from the downstream packaging sector was constant, but the softer turnaround of the automotive industry in October reduced the demand in the importing market. In Mexico, the price of BOPP Films depreciated due to the constant demand from the downstream packaging sector and relief of sanctions on Venezuelan Crude Oil that depreciated production costs of Polypropylene.
In December, the lack of new incoming business afforded companies the opportunity to attend to existing backlogs. The absence of additional orders allowed businesses to focus on fulfilling and completing outstanding work that had accumulated over time. This situation highlights a period of relative stability or reduced demand, providing companies the chance to streamline their operations by addressing and clearing existing backlogs.
APAC
In the APAC region, the BOPP Films market experienced marginal fluctuations in the final quarter of 2023, showing a downturn compared to the preceding quarter. The stability in feedstock Polypropylene prices had a direct influence on BOPP prices in the region during this quarter. In China, post the festive season of the Mid-Autumn festival, demand from the downstream packaging sector gradually diminished, leading to more restrained purchasing sentiments. The increase in industrial activities in China resulted in abundant supplies, creating an oversupplied market, and suppliers had to manage this surplus by offering discounted prices. Meanwhile, in Korea, there were no significant changes in demand for exports to East Asian and North American markets, as the festive season did not gain substantial momentum. Supply chain systems remained stable with no reported disruptions. Additionally, the sharp decline in upstream crude oil prices in the final quarter of 2023 positively impacted production costs and feedstock costs in the APAC region.
Europe
The European BOPP Films market in the current quarter of 2023 (Q4) witnessed a bearish trend characterized by ample product supplies and moderate demand from the Fast-Moving Consumer Goods (FMCG) packaging sector. The pricing fluctuations in BOPP Films were mainly influenced by uncertainties in crude oil prices and the devaluation of Polypropylene, contributing to reduced production costs. Towards the end of 2023, Germany's manufacturing sector continued to contract, albeit showing indications that the most severe phase of the decline might be subsiding. December witnessed a reduction in purchasing activity, with goods producers aiming to streamline their stocks. Manufacturers, in response to lower capacity utilization, once again reduced workforce numbers. The lack of new orders resulted in a sharp decrease in backlogs of work for manufacturers. The decline in new work from overseas also decelerated, primarily due to subdued demand across European markets. Additionally, the Christmas holidays played a role in slowing down demand from potential customers.
MEA
The BOPP Films market in the MEA region during the fourth quarter of 2023 exhibited a bearish trend compared to the preceding quarter, marked by moderate supply and low demand, resulting in a stable market. The depreciation in BOPP Films prices was influenced by the declining prices of the feedstock Polypropylene. Uncertainties in Crude Oil prices were anticipated to further contribute to lowering production costs. Saudi Arabia experienced the most significant price change in the product. Continuous decreases in upstream crude oil prices during the fourth quarter supported lower production costs for BOPP Films and also led to affordable feedstock Polypropylene in the Saudi market. Despite improvements in non-oil sectors, the consumption of BOPP remained weak among enterprises due to oversupply and prevailing demand conditions in overseas markets. Merchants in the Saudi market worked with existing stock levels and offered year-end discount prices, impacting the market. During the final month of fourth quarter, the cost of BOPP film was settled at USD 1552/MT on an Ex-Al Jubail.
