BOPP Film Prices Drop in Early 2025 Amid Oversupply and Weak Demand

Key Highligths: 

• Metallisable, print lamination, and specialized grades range between ₹128–₹155/kg based on specifications.
• Oversupply and weak demand have pressured prices, with cautious buying dominating global markets.
• Incentives, plant shutdowns, and price hikes by major players are reshaping the market.
• Recovery is anticipated in Q1 2025 as inventory levels normalize, though oversupply may limit price increases.

BOPP Price Trends

• As per the last price revision, the pricing for Non-Tape Textile films, delivered wrapping packed (excluding freight and GST), varies based on the micron thickness and grade specifications.
• Metallisable grades range from Rs. 155.0/kg for 7 to 10 microns to Rs. 130.0/kg for 17 microns. Print lamination grades are priced between Rs. 134.0/kg and Rs. 155.0/kg for 8 to 15 microns, with 17 microns priced at Rs. 128.0/kg.
• Release grades fall in the range of Rs. 128.0/kg to Rs. 143.0/kg, covering 12 to 18 microns.
• Specialized grades, including WPP grades for 8 to 15 microns, are priced from Rs. 134.0/kg to Rs. 155.0/kg, while other grades like NO-BGB and N2-MZ are priced at Rs. 128.0/kg and Rs. 130.0/kg, respectively.

Polymer Demand and Supply: Oversupply and Weak Demand Impact Prices

• In early January 2025, the BOPP film market witnessed a notable decline in prices, primarily driven by an oversupply situation and weak downstream demand. 
• The packaging sector, a key consumer of BOPP film, adopted a cautious purchasing approach as broader economic challenges and inventory accumulation curtailed buying activity. 
• This cautiousness was especially evident in China, where manufacturers faced reduced new orders and opted to clear existing stock instead of making fresh purchases. 
• The surplus supply in the market, a result of increased production and inventory buildup during the end of 2024, added further pressure on prices.
• Globally, downstream industries mirrored the trends seen in China, reflecting a subdued demand environment across major markets. 
• Despite stable production levels, the combination of weak demand and excess inventory led to a pessimistic sentiment among suppliers and a general hesitance to adjust production levels downward in anticipation of future demand.

Polymer News

• IOCL has announced a special incentive scheme of Rs. 2000/MT on the upliftment of 1350YG/EG (P/NP) during January 2025. This scheme applies to all PP/Flexi customers with upliftments from PPMC, PDPMC, RSC, DOPW, and VSL. However, the incentive is not applicable to DE and contractual quantities.
• LyondellBasell has announced plans to increase its February Polypropylene (PP) grades prices by 3 cents per pound (equivalent to US$ 66/MT) in the USA.
• Dow Chemical has shut down its Ethylene Oxide (EO) Unit located in Seadrift, Texas, USA, due to an electrical failure. The unit has a production capacity of 430,000 tons per year.
• ExxonMobil has also announced an increase in all its February Polypropylene (PP) grades prices by 3 cents per pound (equivalent to US$ 66/MT) in the USA.
• Lotte Chemical Titan has shut down its Naphtha Cracker NC1 Unit in Pasir Gudang, Johor, Malaysia, to mitigate financial losses. The NC1 Cracker Unit has a production capacity of 430,000 tons per year of petrochemical intermediates, including Ethylene and Propylene.
• Alpek Polyester has restarted its No.1 and No.2 Purified Terephthalic Acid (PTA) Plants in Altamira, Tampico, Mexico, following feedstock issues. The two plants have a combined production capacity of 1 million tons per year.
• Supreme Petrochemicals has increased the prices of GPPS by Rs. 1500/MT and HIPS by Rs. 1000/MT, effective from 20th January 2025.
• Sinopec Shanghai Petrochemical has restarted its Butadiene (BD) Plant after completing maintenance work. The plant, located in Shanghai, China, has a production capacity of 53,000 tons per year.

Expert Opinion

• While the BOPP film market remains weak in the short term, the outlook is cautiously optimistic for the latter part of Q1 2025. As existing inventories are drawn down, businesses in packaging and related sectors are expected to enter a restocking phase, providing some price support. 
• However, any significant recovery will depend on improvements in economic conditions and the performance of key downstream industries. Market participants anticipate a gradual stabilization of demand, but oversupply is likely to cap price increases in the near term.