[China Packaging Network News] Plastic packaging film as a component of plastic packaging, the growing demand. Food, pharmaceutical and personal care products have become the main three directions for the plastic film industry. In recent years, with the development of the packaging industry, plastic packaging as the most important part of the demand has also grown. However, in the past two years, the trend of the plastic packaging industry in China has been somewhat sluggish. The profits of the BOPP, CPP, and BOPET film industries have been continuously compressed, and the film companies are miserable. Here's a brief explanation of the recent abnormal market in the BOPET industry:
According to the demand situation in previous years, before the Mid-Autumn Festival, the film companies had a wavelet procurement peak around July to prepare for food packaging. However, this year the market has gone against the norm. As the demand for terminals has continued to weaken, the entire film market has been difficult to surrender, and prices have fallen after reaching their peak in June.
Below we review several key events that have affected the market trend of China's BOPET market through several events:
1. Since May, the report on the funding chain of Cifu Group was broken and the debt exceeded RMB 5 billion. This led to heated market discussions. Until the end of June, its BOPET film production lines in Shaoxing and Xiangyang were sealed up by banks. The tightening of market expectations caused a big market offer. The rise also triggered a deep reflection on the development of the entire BOPET film industry.
2. In mid-July, regarding the rejuvenation of the Cifu Group event, it was rumored that its production line was scheduled to start operating around July 20th, before delivery of some of the pre-orders to ease inventory pressure. This news immediately triggered a chaos in the market, some companies began to promote low-cost, and the terminal wait and see more and more serious, once again increased the sales pressure of the film companies.
3. Since May, Ningbo Keren has also been parked due to capital chain issues. He was heard that it was acquired by a large trading company in Zhejiang. After the end of June, his equipment was started one after another because of its low production and market share. Therefore, the impact on the market is not great.
4. Yingkou Kanghui is to extend its polyester industrial chain. The first phase of its 7-item 210,000-ton PET film production line is scheduled to be commissioned by the end of July. According to Zhuo Chuang Information, as of the end of the press release, manufacturers have begun to receive advance payment for orders received from external parties. There are no public offers yet, and many are waiting for the equipment to operate normally.
On the whole, ignoring the impact of raw material costs on the film market, the above factors are the main factors affecting the film market in the near future. As demand continues to weaken, the sales pressure of membrane enterprises continues to increase, and it is difficult to improve the pattern of losses of membrane enterprises, and to reproduce and reduce negative control production to relieve pressure. The recent environmental remediation actions in Zhejiang Jinhua also led to the parking of most local small and medium-sized product companies, again reducing the market demand. In addition, typhoon rain in southern China also has a certain impact on the shipment of membrane enterprises and the production of terminal factories. The impact of accidents such as this on the overall BOPET industry is also the reason why the thin film packaging industry is sluggish during the peak season.