What are the price factors that affect BOPP thermal synthetic paper?

The factors that affect the price of BOPP thermal synthetic paper are many, mainly including the following aspects:

1. Raw material cost

Polypropylene (PP) price: The main raw material of BOPP thermal synthetic paper is polypropylene, so the price fluctuation of polypropylene directly affects the cost of BOPP thermal synthetic paper. When the price of polypropylene rises, the production cost of BOPP thermal synthetic paper increases, thus pushing its price up; Otherwise, the price goes down. For example, prices in the European BOPP market rose significantly in early 2024, partly due to high cost pressures from rising prices of the main raw material polypropylene (Source: Business).

2. Supply and demand relationship

Supply side: The supply of BOPP thermal synthetic paper will directly affect its price. When the supply increases, the market competition intensifies and the price may fall; On the other hand, if the supply is reduced, it may lead to higher prices. In addition, the commissioning of new production lines, the restart or shutdown of old lines and other factors will also affect the supply, which in turn affects the price.

Demand side: Demand is another key factor affecting price. When the market demand is strong, the price of BOPP thermal synthetic paper tends to rise; When demand is insufficient, prices can fall. For example, before traditional festivals or promotions, downstream enterprises may stock up in advance, which drives up demand and prices.

3. Production cost

In addition to raw material costs, other production costs such as energy, labor, equipment depreciation, etc., will also affect the price of BOPP thermal synthetic paper. When these costs rise, production companies may pass some of these costs on to product prices, leading to higher prices.

4. Macroeconomic environment

Changes in the macroeconomic environment will also have an impact on the price of BOPP thermal synthetic paper. For example, economic growth rate, inflation rate, monetary policy and other factors may affect market demand and production costs, which in turn affect prices.

5. Industry competition situation

The competitive situation in the industry will also affect the price of BOPP thermal synthetic paper. When the market competition is fierce, enterprises may compete for market share by means of price reduction and promotion. When market concentration is high, firms may have stronger pricing power.

6. Policies and regulations

Changes in policies and regulations may also have an impact on the price of BOPP thermal synthetic paper. For example, the strengthening of environmental protection policies may push production enterprises to adopt more environmentally friendly production processes and materials, thereby increasing production costs and possibly affecting prices.

In summary, the factors affecting the price of BOPP thermal synthetic paper are many, including raw material costs, supply and demand, production costs, macroeconomic environment, industry competition and policies and regulations. These factors interact and together determine the market price of BOPP thermal synthetic paper.