BOPP Tape Mother Roll Industry Problem And Competition Pattern Analysis

- Aug 27, 2019-

First, overcapacity

According to statistics from Zhuochuang, in 2013, the domestic tape mother roll market capacity was 1.5 million tons, and the output was 1 million tons. The industry operating rate was 66.67% during the year. According to international experience, the industry operating rate is less than 75%, which means that the industry is in a period of severe overcapacity. It is concluded that the domestic tape mother roll market is currently in a period of oversupply.

Second, the company's profit is meager

Another industry problem associated with overcapacity is that corporate operations are languishing and earnings are slightly thin. This conclusion can also be intuitively obtained in the profit map of the tape parent company tracked by Zhuo Chuang.

The main purpose of the BOPP tape master roll is to seal the box. The substrate film BOPP is widely favored by the tape market because of its convenient coating and light weight, which is unachievable by other films. And the tape products are thrown out, and other bags and boxes used for sealing are difficult to achieve the safety and hygiene of the tape sealing. Therefore, there is no substitute threat in the tape market, and the competitive advantage is relatively objective.

In terms of raw materials, look at the group data: BOPP: In 2013, the BOPP production capacity was 4.62 million tons, the output was 3.5 million tons, and the industry operating rate was 75.75%. BOPP belongs to the industry with high investment and high operating rate. The operating rate in previous years is maintained at 90%, and the current status shows that BOPP has entered the period of oversupply. According to data from Zhuo Chong's follow-up survey, 10% of the companies have stopped production. Zhuo Ying, an analyst at Zhuo Chuang, expects the overall industry operating rate in 2014 to reach a low of 65%. Through the above analysis, the conclusion that the domestic BOPP industry has a serious excess capacity is self-evident.

Although the domestic tape mother roll market is already in a period of oversupply, the industry's substitutes and sneak entrants are less threatening, and there is already a corresponding development advantage in this direction. In addition, the tape mother roll has a stronger bargaining power for its raw materials. Therefore, our attitude towards the development of the industry should not be pessimistic.