SunSirs: China BOPP Price has slightly Loosened this Week

This week, BOPP has slightly loosened, with a small amount of new orders being sold for essential needs. As of Thursday, the price of thick optical film in East China was between 8,600-8,950 RMB/ton, a decrease of 50 RMB/ton compared to the previous report price. This week's average price is 8,795 RMB/ton, which is 10 RMB/ton higher than last week's average price. This week, raw material PP futures fluctuated weakly, spot prices weakened and narrowed, and the support from the cost side to BOPP weakened. This week, production enterprise equipment maintenance and restart coexist, and the industry's operating load rate continues to decline, but inventory remains high and supply is sufficient. This week, there has been no improvement in terminal demand, and due to weak raw material adjustments, downstream BOPP is cautious and has a weak willingness to purchase goods, resulting in limited support from the demand side for BOPP.

Prediction: It is expected that the high price of BOPP will loosen next week, and actual trading will focus on negotiations. On the raw material side, crude oil is expected to rebound moderately, but PP may consolidate weakly, with limited support on the cost side. On the supply side, the industry equipment may maintain its current on/off state next week, with little change in operating load rate, but high inventory still brings certain pressure to the market. On the demand side, the terminal demand has not yet recovered, the downstream delivery speed of BOPP is slow, and the release of new orders is limited. The cost side and supply and demand side are difficult to support the market, but the industry's gross profit has remained negative for a long time, providing some support for the bottom price. Overall, it is expected that the high price of BOPP will loosen next week. It is expected that the mainstream market price of thick light film in East China will be between 8,600-8,900 RMB/ton, with a weekly average price of 8,770 RMB/ton, a decrease of 25 RMB/ton compared to this week's average price. We will closely monitor the dynamics of raw materials and demand.

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