The Self-Sufficiency Rate of Polypropylene Has Been Continuously Improved

According to the data of average polypropylene self-sufficiency rate from 2019 to 2021, the average polypropylene self-sufficiency rate in recent three years was 84.39%, showing an upward trend in recent three years. Due to the peak of capacity expansion in 2020-2021, PP capacity expansion in two years was as high as 7.14 million tons, which is the fastest growth year since polypropylene capacity expansion.

In particular, the newly added capacity expansion device of zhejiang Petrochemical three lines of 1.35 million tons and Donghua Energy Ningbo phase ii of 800,000 tons of devices have played an indispensable role in the supply of the market. Although the homogenization phenomenon of drawing products has become more and more obvious in recent years, the price performance of drawing and membrane materials in 2021 is significantly better than that of other categories, providing a powerful power for all kinds of raw products.

According to the proportion of downstream CONSUMPTION in PP in 2021, it can be found that the largest proportion of domestic downstream consumption is still wire drawing, accounting for 35% of the whole DOWNSTREAM consumption of PP.

Most of the new domestic expansion devices focus on the first production of wire drawing category, in order to alleviate the various effects brought by the conversion of devices. Plastic knitting is the main domestic PP downstream consumption field, due to the plastic knitting industry in recent years by high raw material constraints, the overall profit is shrinking, resulting in a low annual operating rate.

Copolymerized injection molding, which ranked second, accounted for 22% of the total downstream consumption of PP. The main consumption category of copolymerized injection molding was concentrated in automobile and home appliance industries. Since 2020, due to the impact of the epidemic, global auto companies have been going out of business, resulting in a decrease in domestic auto processing and export parts orders.

Under the constraints of overlaid global chip supply and demand, the domestic demand for block copolymerization has been significantly restricted. This is the main reason why demand for block copolymerization has been tepid last year.

The homogeneity of polypropylene has become a recognized fact, so under the pressure of increasing production enterprises, all kinds of production are seeking new development channels. Especially in recent years, three high PP products, foaming polypropylene, low ash rapid forming PP, hydrogen transfer PP, high transparency PP, antibacterial series PP have become the new pet of polypropylene in the future. In the future, polypropylene downstream consumption toward high-end, refined direction development, production enterprises have used new product innovation, to add new vitality for the enterprise!