Mixed sentiment observed in China as five new BOPP sheet plants start up
In usual circumstances, these startups indicate higher demand for raw materials, in this case, homo-PP yarn and BOPP.
China is set to welcome at least five new BOPP film/sheet converters in the first quarter of 2024, adding another 265,000 tons/year of finished products to the market. In usual circumstances, these startups indicate higher demand for raw materials, in this case, homo-PP yarn and BOPP.
|
BOPP Plant Name |
BOPP Product length |
Capacity (tons/year) |
Startup Date |
|
Furong New Material |
8.7 meter |
45,000 |
Jan-24 |
|
Deguan New Material |
8.7 meter |
45,000 |
Jan-24 |
|
Yantai Fuli |
8.7 meter |
45,000 |
Q1 2024 |
|
Yunnan Yourijiu |
10.4 meter |
65,000 |
Q1 2024 |
|
Shenyang Youmao |
10.4 meter |
65,000 |
Q1 2024 |
|
Total Annual Output (tons) |
265,000 |
|
|
China is now producing an estimated 7.305 million tons/year of BOPP film/sheet and given the dwindling economic conditions over the past couple of years, many of the existing converters have not been able to fully utilise their capacity due to the lack of end-product orders.
“In the short run, heightened competition might squeeze smaller scale converters, but the overall demand for raw material shall increase. We are reaching out to these new customers to secure new businesses,” a trader commented.
In the previous report, CommoPlast surveyed 75 BOPP film converters across China to determine the length of the Lunar New Year holiday these companies intended to take. It was found that 59 converters are planning to go offline for an average duration of 10-20 days, extending 3-10 days from the same period last year. This extension is attributed to the persistent weakness in end-product orders.