Polypropylene BOPP Price Forecast Report 2024-2025 | Latest Prices, Outlook, Market Dynamics, Demand-Supply Analysis, Extensive Forecast, Detailed Insights, Historical and Forecast Data

Polypropylene BOPP Price Forecast

In 2024, the Polypropylene (BOPP) market expects continued price fluctuations. Despite new production line additions contributing to supply pressures in Q1, demand remained weak in the traditional off-season Q2. By the end of March 2024, China's BOPP production capacity reached 7.525 million tons, with more new lines scheduled for the second quarter, adding 140,000 tons of capacity. However, operational adjustments by producers and a gradual demand recovery towards Q2-end could provide market support amidst the fluctuations.

Market Dynamics

In China, the polypropylene industry in 2024 is experiencing a mixed landscape of challenges and adjustments. Before the holiday, both supply and demand were weak, leading to a market correction. Although crude oil prices fell during the holiday, improved domestic policy fundamentals have boosted market optimism, resulting in higher PP prices. However, despite active destocking efforts post-holiday, end-user demand remained flat, leading to increased inventories. Additionally, the global economic situation is affecting domestic exports and order follow-up, with weak enthusiasm for raw material procurement.

However, specific sectors like agricultural irrigation and infrastructure show better demand. Plastic weaving and film factories are gradually increasing production and raw material replenishment due to favorable raw material prices and improved macroeconomic expectations. In agriculture and construction, demand for products like fertilizer and cement bags is on the rise, indicating potential market improvement.

Annual Outlook for Polypropylene Industry

The polypropylene industry in 2024 faces significant challenges and shifts due to China's expanding capacity and evolving economic conditions. China's PP exports surged by 96% in Q1 2024 compared to 2023, potentially reaching 2.5 million tonnes annually. The economic growth in China is further hindered by trade tensions, an ageing population, leading to a forecasted PP demand growth of just 2% in 2024, a significant slowdown from the past average of 12%.

In the US, the PP market outlook is similarly challenging, with weak demand and market volatility. Despite some recovery in the auto sector, overall demand remains sluggish, and North American PP operating rates struggled to rise above 70%. Spot prices for PP have been increasing since July 2023 due to attempts by producers to improve margins amidst fluctuating propylene (PGP) prices. New capacities coming online in 2024, such as Formosa's 250,000 mt/year PP unit, will further challenge operating rates, while the industry trims older, less efficient capacities.

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Historical Price Data and Analysis:

• In-depth review of prices (including feedstock) over the past 5 years.

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• Detailed analysis of current supply and demand factors shaping the market, along with projections for how these dynamics are expected to evolve during the forecast period.

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• Forecasted price trends for the next 2 years using statistical modelling and fundamental & technical analysis.

• Scenario analysis and potential price fluctuations.

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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.