7 projects, with 1.32 million tons of new capacity put into production, the supply and demand pattern of propylene oxide will change

On February 19 , 2021 , the major spring projects in Zibo City, Shandong Province will start construction, involving 25 key projects in Zibo City with a total investment of 12.

On February 19 , 2021 , the major spring projects in Zibo City, Shandong Province will start construction, involving 25 key projects in Zibo City with a total investment of 12.

The chlorohydrin method accounts for the largest proportion and has been banned for new projectsThe chlorohydrin method accounts for the largest proportion and has been banned for new projects

Propylene oxide is a very important organic chemical raw material.

Propylene oxide is a very important organic chemical raw material.

Qixiang Tengda’s 300,000- ton / year propylene oxide project invests 3.

Shandong Jincheng Petrochemical Group Qinghe Chemical Technology Co.

The domestic methods for preparing propylene oxide mainly include chlorohydrin method, co-oxidation method, hydrogen peroxide method to prepare propylene oxide ( HPPO ), and cumene oxidation method to prepare propylene oxide ( CHPPO ).

Table 1The advantages and disadvantages of each production process technology of propylene oxide and the situation of the technology ownerTable 1The advantages and disadvantages of each production process technology of propylene oxide and the situation of the technology owner

Among the various production processes of propylene oxide, the chlorohydrin method has banned new chlorohydrin method installations from 2015 ; HPPO has relatively few industrialized installations due to incomplete technology, patented technology provider only Sumitomo Japan, and high operating costs; Air ( or oxygen ) direct oxidation technology is in the experimental stage, and the technology is not yet mature, and it may take some time before industrialization is promoted.

Among the various production processes of propylene oxide, the chlorohydrin method has banned new chlorohydrin method installations from 2015 ; HPPO has relatively few industrialized installations due to incomplete technology, patented technology provider only Sumitomo Japan, and high operating costs; Air ( or oxygen ) direct oxidation technology is in the experimental stage, and the technology is not yet mature, and it may take some time before industrialization is promoted.

Judging from the projects under construction and planning in the past two years, the two domestic methods of co-oxidation and HPPO go hand in hand, accounting for about half of them.

Propylene oxide domestic craftsmanship emergesPropylene oxide domestic craftsmanship emerges

With the acceleration of localized R&D and large-scale application of propylene oxide, my country's propylene oxide independent technology is catching up.

With the acceleration of localized R&D and large-scale application of propylene oxide, my country's propylene oxide independent technology is catching up.

At present, the domestic production capacity of propylene oxide chlorohydrin method is about 1.

China Petroleum & Chemical Corporation, Tianjin Branch 15 Wandun / years CHPPO propylene oxide legal project was 2020 years 7 Yue 16 2009 started using China Petroleum & Chemical Corporation Shanghai Research Institute of Petrochemical self-developed technology for domestic First application.

The 120,000- ton / year propylene oxide project of Hongbaoli Group Taixing Chemical Co.

In addition, Wanhua Chemical Group Chemical Co.

The concentrated launch of projects will trigger a crisis of overcapacityThe concentrated launch of projects will trigger a crisis of overcapacity

For a long time, the shortage of propylene oxide in my country has stimulated the large-scale expansion of domestic manufacturers.
2012-2015 is a period of rapid release of propylene oxide production capacity.
As new production capacity is basically being gradually digested by new demand, the growth rate of production capacity has gradually slowed after 2015.
As of the end of 2020 , the domestic production capacity of propylene oxide was 3.
282 million tons / year, and the production capacity of Shandong Xinyue, Jilin Shenhua, and CNOOC Shell It ranks among the top three in China, with 350,000 tons / year, 300,000 tons / year, and 290,000 tons / year.

For a long time, the shortage of propylene oxide in my country has stimulated the large-scale expansion of domestic manufacturers.
2012-2015 is a period of rapid release of propylene oxide production capacity.
As new production capacity is basically being gradually digested by new demand, the growth rate of production capacity has gradually slowed after 2015.
As of the end of 2020 , the domestic production capacity of propylene oxide was 3.
282 million tons / year, and the production capacity of Shandong Xinyue, Jilin Shenhua, and CNOOC Shell It ranks among the top three in China, with 350,000 tons / year, 300,000 tons / year, and 290,000 tons / year.

As the impact of the new crown pneumonia epidemic weakens, there will be multiple propylene oxide projects in China in 2021.
See Table 2 for details .

As the impact of the new crown pneumonia epidemic weakens, there will be multiple propylene oxide projects in China in 2021.
See Table 2 for details .

Table 2 Statistics of China's new propylene oxide production capacity in 2021 10,000 tons / year

Table 2 Statistics of China's new propylene oxide production capacity in 2021 10,000 tons / yearTable 2 Statistics of China's new propylene oxide production capacity in 2021 10,000 tons / year

According to Table 2 , in 2021 , it is expected to add 1.
32 million tons / year of production capacity, and the rapid expansion of production capacity will have an impact on the propylene oxide market.
According to related reports from Huaxin Consulting , China's total propylene oxide production capacity will be 3.
21 million tons per year in 2020 ; the capacity utilization rate will be 80% .
Between 2020 and 2025 , China will add 4.
62 million tons of propylene oxide production capacity per year, with an average annual growth rate of 19.
5% .
In 2020 , China's propylene oxide demand is 3.
08 million tons, with a self-sufficiency rate of 83% , and an average annual growth rate of 7.
7% ; by 2025 , China's propylene oxide production capacity / demand and total supply / total demand will be 176% and 187%, respectively .
At that time, the propylene oxide industry will undergo a comprehensive surplus phase.

According to Table 2 , in 2021 , it is expected to add 1.
32 million tons / year of production capacity, and the rapid expansion of production capacity will have an impact on the propylene oxide market.
According to related reports from Huaxin Consulting , China's total propylene oxide production capacity will be 3.
21 million tons per year in 2020 ; the capacity utilization rate will be 80% .
Between 2020 and 2025 , China will add 4.
62 million tons of propylene oxide production capacity per year, with an average annual growth rate of 19.
5% .
In 2020 , China's propylene oxide demand is 3.
08 million tons, with a self-sufficiency rate of 83% , and an average annual growth rate of 7.
7% ; by 2025 , China's propylene oxide production capacity / demand and total supply / total demand will be 176% and 187%, respectively .
At that time, the propylene oxide industry will undergo a comprehensive surplus phase.

In the future, we should open up overseas markets and focus on integrated development 

In the future, we should open up overseas markets and focus on integrated development.
In the  future, we should open up overseas markets and focus on integrated development.
 

With the arrival of the climax of domestic propylene oxide construction, the risk of oversupply in the propylene oxide market has gradually increased.
Domestic demand will be completely self-sufficient, and product surplus will become inevitable.
Some companies have to seek the international market, and the profit margin of propylene oxide will be greatly narrowed.

With the arrival of the climax of domestic propylene oxide construction, the risk of oversupply in the propylene oxide market has gradually increased.
Domestic demand will be completely self-sufficient, and product surplus will become inevitable.
Some companies have to seek the international market, and the profit margin of propylene oxide will be greatly narrowed.

Most of the foreign propylene oxide industry is an integrated product chain based on the petrochemical industry.
Propylene, ethylbenzene, isobutane, isocyanate, etc.
can be exported or used for personal use according to price changes, without damaging the overall economic benefits of the company, and helping to improve the company’s Competitiveness.
Domestic enterprises should refer to their experience, when constructing propylene oxide production equipment, consider the source of raw materials and downstream product development as a whole, and it is best to build high-value equipment with integrated upstream and downstream equipment to form a development pattern for the entire industry chain and effectively reduce future concentration of production capacity.
Release the competitive pressure brought by it.

Most of the foreign propylene oxide industry is an integrated product chain based on the petrochemical industry.
Propylene, ethylbenzene, isobutane, isocyanate, etc.
can be exported or used for personal use according to price changes, without damaging the overall economic benefits of the company, and helping to improve the company’s Competitiveness.
Domestic enterprises should refer to their experience, when constructing propylene oxide production equipment, consider the source of raw materials and downstream product development as a whole, and it is best to build high-value equipment with integrated upstream and downstream equipment to form a development pattern for the entire industry chain and effectively reduce future concentration of production capacity.
Release the competitive pressure brought by it.

It should also be noted that under the background of stricter environmental protection, backward production capacity is expected to gradually withdraw from the market, the proportion of chlorohydrin production capacity will further decline, the propylene oxide industry will continue to transform and upgrade, and some new technologies will be adopted.
Due to factors such as low operating rate of equipment and equipment, unstable production, strong downstream polyurethane demand and other factors, my country's propylene oxide may maintain a tight balance between supply and demand in a short period of time.

It should also be noted that under the background of stricter environmental protection, backward production capacity is expected to gradually withdraw from the market, the proportion of chlorohydrin production capacity will further decline, the propylene oxide industry will continue to transform and upgrade, and some new technologies will be adopted.
Due to factors such as low operating rate of equipment and equipment, unstable production, strong downstream polyurethane demand and other factors, my country's propylene oxide may maintain a tight balance between supply and demand in a short period of time.