Mask industry chain has changed and the demand for polypropylene has increased

In the mask industry chain, the seesaw relationship between upstream polypropylene companies and midstream meltblown companies is changing. With the continuous expansion and anti-counterfeiting of meltblown enterprises, the market's demand for polypropylene powder has increased greatly. What has never been dared to think in the past is now happening.

From niche products to celebrity products
Polypropylene powder, also known as "melt-blown modified special material", is a high-melt fat polypropylene. After this powder is modified by additives such as peroxides, the raw material of melt-blown cloth-modified PP (melt-blown material) is generated.

In 2019, the domestic production of polypropylene powder (fiber grade) is about 700,000-800,000 tons / year, which is only 2% -3% of the total production capacity of the polypropylene industry with an annual output of 30 million tons, which is a poly A niche product in a propylene company.

However, the new crown epidemic changed the market demand for polypropylene powder. The maximum domestic mask production capacity in 2019 is 20 million pieces / day, and the current official figure is 200 million pieces / day. The new demand for polypropylene powder has been amplified by at least 10 times.

As an important supplier of polypropylene in China, Satellite Petrochemical currently produces 450,000 tons of polypropylene per year (about 1,400 tons per day). Before April this year, the satellite petrochemical plant used to produce polypropylene powder (fiber grade), the annual output was 340,000 tons / year.

Rongsheng Petrochemical cooperates with melt-blown modified material production enterprises and provides polypropylene powder and pellets. The company's polypropylene powder and pellets are in short supply, and prices follow the market, adopting a competitive bidding model.

Due to the blowout of polypropylene powder demand, this former niche product is now becoming the hope of related companies. Some polypropylene companies claim that the polypropylene powder alone can make up for the decline in other downstream demand.

High fever does not retreat melt-blown cloth and anti-counterfeiting
It is reported that after the outbreak of the new crown epidemic, with the blowout of mask demand, domestic meltblown cloth prices have remained high. The limited supply of melt-blown cloth made some criminals crooked. The use of ordinary PP fiber materials to replace melt-blown grade PP and ordinary extruders and injection molding grades to replace professional production equipment for melt-blown fabrics has also caused chaos in the industrial chain and uneven product quality.

The price difference and the serious mismatch between supply and demand are important factors leading to the proliferation of inferior meltblown fabrics.

In terms of price, the price of PP fiber material for producing low-quality melt-blown cloth is 7,000 CNY/ton, while the price of melt-blown grade PP is 60,000 CNY/ton. It is not difficult to see that the price of ordinary fiber material is better than that of melt-blown grade PP. There are obvious advantages.

According to some polypropylene companies, according to official figures, the demand of each link of the industrial chain has been enlarged by at least 10 times compared with previous years. In fact, the demand for polypropylene powder is far greater than this number.

The blowout of polypropylene powder demand has to mention the counterfeiting of the downstream mask industry chain. Among them, the anti-counterfeiting actions of Jiangsu Yangzhong attract the most attention from the outside world.

It is reported that after the outbreak of the New Crown epidemic, small workshops producing a large number of melt-blown cloths grew up in Yangzhong. The locality almost fell into the frantic situation of buying melt-blown cloth machines and producing melt-blown cloths for all people. ". However, the appearance of a large number of inferior meltblown fabrics in Yangzhong has aroused widespread concern from all walks of life.

From April 10th, the local government implemented rectification of the meltblown fabric industry. In just a few days, the local government issued rectification notices to 255 companies involved in the "three no products" problem.

Something I never dared to think is happening
"The powder (PPH225) provided by our company can be made into Y1500 after peroxide reaction. This is the most authentic melt-blown material and can be used as a N95 medical mask. At present, the company has already cooperated with the main melt-blown cloth in China The production enterprises have signed supply agreements. Companies like Dawn, Guoen, Nanjing Julong, etc. are all our customers. "The person from Satellite Petrochemical said.

The clients named above are just listed companies common in the capital market. In fact, under the swarm of capital, more and more enterprises produce melt-blown materials. In this regard, satellite petrochemicals have deep experience.

"It turns out that the company's polypropylene powder has stable customers of no more than 20 per year, and now there are 20 new customers inquiring for a day." Satellite Petrochemical said that these new customers may have been modified nylon, ABS modification, PC modification, PS modification and other enterprises engaged in modification.

Under the current epidemic, these modification companies are not making money now, so they use existing equipment to transform and produce melt-blown materials.

In the end, how many companies are pouring gold into the melt-blown material industry? According to information on interactive platforms and market reports, A-share listed companies that expanded production and converted to meltblown materials were not cases.

At the end of April, CGNPC, Dawn Co., Ltd. and Guoen Co., Ltd. all announced that they would expand the new production line on the basis of the original production line, and the new production lines were delivered, installed and commissioned in an orderly manner. Plett said on April 9 that the daily production of Plett melt-blown materials has increased to more than 300 tons.

With the continuous expansion of production of melt-blown materials, the market demand for polypropylene powder is also increasing rapidly. In this mask industry chain, the supply and demand side initiative is also changing.

"A few days ago, the chairman of a central enterprise personally called me to order polypropylene powder. According to him, the company has 100 melt-blown material production lines under reconstruction, and the daily demand for polypropylene powder It is about 800 tons. Like this kind of customer, we were not received when we visited, but now it is different. In front of the mismatch between supply and demand, they also take the initiative to ask for goods. These things have not been dared to think before. "No Willing to be named polypropylene enterprises.