Overview of Polypropylene Market in China in 2021

First, the cost changes constantly

According to the cost data of polypropylene, the cost of various raw materials this year is significantly higher than that of previous years, among which the cost of methanol and coal is far ahead in the second half of the year. In 2021, the average cost of methanol production was 9,685 CNY/ton, with a year-on-year increase of 37.67%. The average cost of coal production this year is 9,017 CNY/ton, up 44.02% year on year, which is the highest growth category of polypropylene raw material cost. It is well known that China's coal PP expansion concentrated in 2014-2016, in recent years, environmental protection policies to suppress the rapid development of coal resources, so that the pace of coal expansion in the future is slow, but coal PP as an indispensable product in our PP, in the polypropylene market occupies a pivotal position.

Second, coal PP expansion progress in recent years

According to the proportion of production capacity of polypropylene from different raw materials in the past five years, it can be found that the proportion of production capacity of coal based PP shows a trend of gradual decline. In 2021, the capacity of coal based PP will decrease by 6% compared with the capacity of 2015. Firstly, the capacity of coal based PP has little capacity expansion in the past three years, resulting in no follow-up of its capacity; In addition, oil production and PDH production capacity has increased rapidly in recent years, which accounts for the proportion of coal PP production capacity in the country. It is undeniable that in recent years, due to the impact of environmental protection and other related policies, coal BASED PP will be cancelled or postponed in the future new expansion projects, but coal based PP still plays a pivotal role in the whole PP.

Third, the future development of PP market

In the future development of polypropylene, whether from the perspective of production capacity or downstream demand, the fierce market competition is inevitable. From production side, the different raw materials enterprise who is more advantage on the cost, is the most important things affect future enterprise development, coal enterprise, although the short-term market supply and demand and the cost caused by policy changes greatly, but the current policies to guide has to return to its normal level, and coal PP technology polyolefin market in China has been very mature, Products in the whole market occupies a very important role, the future is also an indispensable part of the polypropylene market. The world is paying attention to the impact of environmental protection, all kinds of domestic production enterprises in order to ensure profits and actively develop products that conform to environmental protection and the development of The Times, the market competitive advantage is more prominent.