Golden September Arrives, Industry Chain May Boost BOPP Demand Increase

Introduction:As of August 27, 2025, the weekly order days for BOPP samples in China decreased by 1.77% compared to the previous period. With the arrival of the peak season in September, the demand in downstream industries such as packaging and printing is expected to steadily increase, which in turn may boost BOPP consumption and lead to an anticipated increase in orders for film companies.

In August, the BO PP market saw a slight price correction, with the overall average price down by 1.16% compared to the previous month. As of August 29, the mainstream price for thick optical film in the East China market was between 8,100 and 8,300 RMB/ton, remaining flat month-on-month. International crude oil prices showed a downward trend, PP futures continued to decline, and the spot market followed with a correction. With insufficient cost support, film manufacturers slightly reduced their ex-factory prices by 150 RMB/ton. Market mainstream prices remained basically stable, with some regions seeing a slight drop of 50 RMB/ton. According to traders, overall market inquiries were not strong, downstream buyers continued to place orders at low prices, and sales undercutting was able to maintain thin profits through increased volume. When prices were slightly higher, downstream bargaining power obviously weakened.

BOPP Monthly Fluctuation Table of Industrial Chain Products (Unit: Yuan/Ton)

Data source: Longzhong Information

8 In [Month], the prices of raw materials in the BOPP industry chain, BOPP prices, and downstream tape master roll prices all showed a downward trend.

Crude oil prices declined, leading to insufficient cost guidance for the industrial chain. The focus of PP futures and spot prices fell within the month, with the cost trend showing a stepwise decline. In August, the average price of raffia in East China was 6,970.97 yuan/ton, down 1.41% month-on-month and 7.72% year-on-year.

The downstream product, tape jumbo roll, shows little movement in raw material trends, with downstream demand mainly driven by small orders. The monthly average price decreased by 3.21% compared to the previous month and by 11.96% compared to the same period last year.

BOPP Table of Correlation Coefficients of Related Product Prices

Source of data: Longzhong Information

From January to August 2025, overall, BOPP showed a high correlation with upstream PP. Main factors in August: As the raw material for BOPP, PP directly affects BOPP prices. In August, the price adjustment range of BOPP was basically consistent with that of PP, and the correlation between BOPP and its raw material increased significantly. The correlation between BOPP and tape jumbo rolls dropped to 0.79 in August, which was lower than the correlation coefficient between BOPP and its raw material. In September, the cost side of BOPP may provide some support, driving film prices upward and giving downstream industries a certain level of confidence to restock.

In August, the average order duration for BOPP companies was 8.82 days, representing a month-on-month increase of 0.80% and a year-on-year increase of 28.01%. As both raw material and film prices have declined, and there is an expectation of increased demand in the future, some downstream enterprises and traders anticipate that although there is a possibility of a further drop in film prices, the scope for such a decrease is limited. As a result, they are making moderate follow-up orders to replenish stocks. In mid-August, some film companies received satisfactory orders, but overall downstream demand remained limited, and there was no significant replenishment activity observed in the market.

In September, the international oil prices are expected to have room for decline. The United States is promoting peace talks between Russia and Ukraine, leading to a relaxation of geopolitical tensions. Additionally, the U.S. Labor Day in early September marks the end of the summer travel peak, indicating a seasonal decline in demand, which will gradually weaken support for oil prices. For polypropylene (PP), there are expected maintenance shutdowns in September, while some previously shut down facilities will gradually resume operations. Coupled with the expected capacity expansion of CNOOC's Daxie Petrochemical Phase II Line 1 with a capacity of 450,000 tons per year, there is a potential increase in market supply resources. Most downstream industries are gradually entering the peak consumption season, providing favorable support for PP downstream demand. Therefore, there is some guidance on the cost side for BOPP. On the supply side, many recently shut down facilities have resumed production, and new capacities are being released in North China, Southwest China, and East China, indicating a potential gradual increase in market supply. In terms of demand, September marks the traditional peak demand season for BOPP, and there are additional consumption benefits from traditional holidays expected later.Holidays such as Mid-Autumn Festival and National Day, including visiting relatives and traveling, both drive consumption in the packaging industry.Additionally, there is a possibility of increased overseas demand, and membrane companies may see a slight rise in orders.