Polypropylene pull up lack of power gradually lost momentum

The biaxially oriented polypropylene (BOPP) film market has continued to rise in the early stage, but it has gradually declined in recent days due to the impact of international crude oil price volatility, continued weakness of raw material monomer polypropylene, oversupply, and difficult to follow up demand. The window is already open. It is expected that in the absence of particularly encouraging news, the market outlook will return to a rational return with shocks.
The lower international oil prices have made the BOPP market less popular. Recently, the Fed admitted that the U.S. economic development is slowing down. In July, U.S. non-agricultural employment decreased by 131,000, and the employment rate dropped for the second consecutive month. In particular, the U.S. trade deficit has soared by 19% to 49.9 billion U.S. dollars. This series of unsatisfactory data has become a stumbling block in the international crude oil market. Concerns about the slowdown in world economic growth have led investors to sell high-risk assets. Oil investors have panic-stricken selling. Although the decline in U.S. crude oil inventories was larger than expected, the bullish sentiment in the market was difficult to gather for a short period of time.

The decline in raw material polypropylene prices is also one of the reasons for the unsustainable BOPP rally. In the past half a month, polypropylene prices have continued to decline, and the weak downward trend has been difficult to resist. The decline has further deepened, and the operating rate has only remained at around 85%. Although some devices are waiting for overhauls and other good news support, they are closed by international oil prices. Under the influence of factors such as continuous decline, no significant improvement in fundamental demand, and unreliable business confidence, the buyers and sellers are currently in the stage of sawing. Most businessmen believe that the high ex-factory price of petrochemical companies will temporarily set the market, but some businesses are confused about the market outlook, and continued demand-driven purchases can lead to heavy sales. Most people in the industry believe that, based on the current fundamentals, the price of polypropylene may be adjusted downwards in the near future. Therefore, the price of polypropylene has been declining, and it has been difficult to provide support for the downstream market, resulting in insufficient upward momentum for BOPP.

At present, the operating rate of the BOPP plant has increased. Tengzhou Zhongsu No. 3 inspection and repairing production line resumed driving on August 11. The long-term stop line in the Fujian era also resumed production last week. Therefore, the market has sufficient supply. At the same time, after the price of BOPP continued to increase, some merchants took profits and the market's speculation atmosphere weakened, making it less popular. The downstream manufacturers of BOPP are still in conflict with the high prices, and the terminal is still at a high level, and the transaction is still bearish. Film prices in the upper and lower support efforts are not good "two sides attack," the high offer fell gradually, film makers in eastern China took the lead in the film market high-end prices closer to the mainstream. In particular, the international crude oil market closed down in recent days. The negative economic data has aggravated market sentiment and worsened the difficult transaction status of BOPP. In addition, the market price of polypropylene has also shown greater concessions, and multiple crackdowns have accelerated the price of entering the decline channel.

Although BOPP membrane companies currently have low inventory and pre-orders have been basically completed, the downstream demand is low, orders are not satisfactory, demand cannot be followed up, and some regions have taken the lead in adjusting prices. In a situation where market confidence is difficult to boost and the market is not driven by upward momentum, the downward adjustment of BOPP prices will become inevitable.