What is the supply and demand situation of BOPP thermal sensitive synthetic paper market?

The supply and demand situation of BOPP thermal sensitive synthetic paper market can be analyzed from the following aspects:

1、 Supply side situation

New production capacity:

In recent years, the BOPP industry has continuously released new production capacity. For example, in 2024, the total new production capacity of BOPP products at home and abroad will be about 600000 tons, a year-on-year increase of 8.2%. Entering 2025, the expansion of BOPP capacity continues, and it is expected that there will still be a large amount of new production capacity put into the market, which may further increase the supply-demand contradiction.

According to statistics, the new production of BOPP in 2025 is still at its peak, and the production plan is mainly concentrated in traditional production intensive areas such as East China, South China, and North China. It is estimated that the total production capacity of China's BOPP industry will reach around 8.3 million tons by the end of 2025.

Capacity utilization and inventory:

With the continuous addition and upgrading of production lines, the capacity utilization rate of the BOPP industry is gradually improving. However, due to relatively lagging demand growth, inventory levels remain consistently high.

During certain periods, such as the first three quarters, inventory continues to accumulate due to sustained new production and sluggish demand recovery. After entering the fourth quarter, although the pace of production slowed down and demand increased, inventory remained higher than the historical same period level.

2、 Demand side situation

Demand growth:

Overall, the demand for BOPP thermal sensitive synthetic paper is showing an increasing trend. This is mainly due to the rapid development of the packaging industry and the increasing demand from consumers for packaging quality and environmental protection.

However, the growth rate of demand is relatively slow and there is a characteristic of periodic recovery. During certain periods, such as the traditional peak season before the Spring Festival, demand will be released as scheduled; But at other times, demand may remain lukewarm.

Export demand:

Export has become a major driving force for the growth of BOPP demand. With the development of Southeast Asian countries and the increasing demand for BOPP, as well as the worsening oversupply of BOPP in China, more and more enterprises are turning their focus to export.

Data shows that the total export volume of BOPP in China continues to grow, and the proportion of exports has also increased accordingly. This is mainly due to the price advantage and quality improvement of Chinese BOPP products.

3、 Supply and demand contradictions and price trends

Supply and demand contradiction:

Due to the rapid growth of the supply side and the relatively lagging growth of the demand side, there is a supply-demand contradiction in the BOPP thermal synthetic paper market. This contradiction has continued to intensify in recent years, leading to pressure on market prices.

Price trend:

Affected by the contradiction between supply and demand, BOPP prices have shown a trend of low volatility in recent years. For example, in 2024, the price of BOPP in China fluctuated between 8640-9025 yuan/ton, with a significantly narrower amplitude compared to 2023.

Entering 2025, due to the continued release of new production capacity and relatively limited demand growth, it is expected that BOPP prices will continue to fluctuate at a low level. However, considering the supportive effect of negative gross profit on prices and the uncertainty of macro policies, the price decline may be limited.

In summary, the BOPP thermal synthetic paper market is facing a contradictory situation of oversupply and relatively lagging demand growth. This contradiction has led to pressure on market prices and a trend of low volatility. In the future, enterprises need to closely monitor market dynamics and policy changes, and flexibly adjust production strategies to cope with market challenges. At the same time, it is also necessary to strengthen technological innovation and product research and development to improve product quality and added value, thereby enhancing market competitiveness.