Brief Price Analysis of BOPP in September: material price has fallen lower and lower, film market trade discussion with low price
Market Price Review
The first week: early this week, influenced by material price support, quotation does not have big adjustment, film factories orders of last week are still delivering, few willing of low price order, downstream is based on rigid demand, and bulk orders do not exist. With some material price falls this weekend, which has influence to trade sentiment, some film factories fall the high quotation, dealer want to wait the price after Mid Autumn Festival.
The Second week: after film price is compressed by PP futures and low factory price, volume price is going down. Film factories are still having orders to delivery, but because new orders trading situation is not good, all the mainstream factories have pressure to receive orders. Some film factories reduce production load and the whole operation rate is insufficient.
The third week: this week, material price is still maintain low trend, film factories quotation follows by material price, which is the same with last replenishment price. Downstream pay more attention to low terminals, some rigid demand is received, factories orders have a certain support. However, there is still almost region material price goes down on Thursday, merchants are still wait and see, and it becomes weaker of replenishment.
The fourth week: material price falls sharply this week, all petroleum/ petrochemical regions start to price slide, film market fills up pressure to fall. Film factories’ orders last week are still delivery this week, influenced by order support, quotation do not have big adjustment, but some factories actual price discussion room increase. Merchants have obviously waiting sentiment, with material price stop falling, focus on low price stock.
The fifth week: last three workdays before the National Day, with material price stop falling to rise, film market price keeps stable, after dealer buying with low price , weekly market goes back to stable trend.
BOPP Film Market Analysis in September
The whole September film market sentiment is at falling trend. Although market has trade, concentrate replenishment sentiment is not good, traditional golden nine silvers ten price is presented to be “peak season become off-season”. This month, price gap is RMB 200-300/ton. Early this month, film factories price is influenced by orders and material price is become stable, but with material slides, high level quotation goes down. Material price falls again and again. Mid- to end of September, the whole price falls to downstream psychological expectation, there is a certain trade volume in the market. By convention, price rising expectation after order replenishment is break up by Sinopec policy, with material continue starting price slide, film market just can do a further test. Until to the end of this month, film market stops fall to rise and it back to stable situation.
Future Expectation on BOPP Film Market in October
After the National Day, the effective workdays in October is short, which will influence merchants and terminals, but upstream material and film factories will have a certain pressure. Merchants will be influenced by material price, and there is a certain trade volume with low price before the National Day. But merchants stock up is based on downstream demand more maintain normally inventory work. With stock up by merchants before the National Day, there will be a certain time to digestion phase after the National Day. It is predicted that market trade volume is limited in the first half of this month. After the mid-to-end of October, merchants will have a new round of replenishment demand. All in all, market price will be still influenced by material price after the National Day. Now, with presupposition of market contradiction do not have obviously change, news will be influence more to merchants psychology. In addition, there are some new devices put into production in October.
