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    Home > Chemicals Industry > Rubber Plastic News > Jinneng and Gulei are sprinting with new production capacity. Will the polypropylene market be under pressure during the year?

    Jinneng and Gulei are sprinting with new production capacity. Will the polypropylene market be under pressure during the year?

    • Last Update: 2022-08-28
    • Source: Internet
    • Author: User
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    In 2021, the total demand is expected to maintain an upward increase.
    Although there is a dual supply increase of domestic and imported, it has not impacted the supply and demand pattern of polypropylene in China.
    The growth momentum of polypropylene will not decrease.
    2021 will enter the first year of the Fourteenth Five-Year Plan.
    Polypropylene production capacity will hit a high of 40 million tons.
    How will the market develop in the future?

    Jinneng Technology's new material and hydrogen energy comprehensive utilization project is equipped with a 450,000-ton/year polypropylene plant downstream.
    According to market information, the upstream raw material propane has arrived at the port.
    At present, the project plant has entered the production preparation stage.
    It is expected that products will be produced by the end of the month.
    The products are sold by Jinneng Technology


    .


    Another device planned to be driven this month is Gulei Petrochemical in Fujian Province.
    At 8:53 am on July 15th, the "Baoxing" ship from Zhoushan, Zhejiang successfully arrived at the Gulei Petrochemical Terminal, marking Gulei Petrochemical.
    The first ship of Petrochemical Terminal Company successfully berthed, which opened the prelude for the company to ship raw materials into the plant


    .


    The "Baoxing" wheel is loaded with 2,300 tons of propylene, which provides the necessary raw materials for the company's steam cracking unit to start construction, and lays a material foundation for "sprinting on 7.
    28 to achieve a successful trial run with safe materials".
    The polypropylene products produced by the company are sold by Petrochemical South China.


    .


    In recent years, the polypropylene industry has continued to accelerate its deployment.
    In addition to the rapid deployment of central enterprises represented by Sinopec, PetroChina, Sinochem, etc.
    , private enterprises represented by Zhejiang Petrochemical, Shenghong, Hengli, etc.
    have also ushered in the peak of production.
    It began to be delayed continuously and accelerated the layout of the whole industry chain


    .


    Entering the first year of the 14th Five-Year Plan in 2021, China's polypropylene market will continue to expand its capacity.
    The polypropylene production capacity will hit a high of 40 million tons.
    How will the market evolve in the future?

    According to statistics, in the first half of 2021, a total of 2.
    05 million tons of new production capacity will be added.
    From the supply side, in the post-epidemic era, the global economy is gradually recovering, and production capacity growth will continue.
    Intensive production in the first half of 2021


    .


    As the country with the fastest recovery from the epidemic, China's economy, domestic demand, and export demand have all rebounded rapidly.
    In 2021, the total demand is expected to maintain an upward increase.
    Although there is a dual supply increase of domestic and imported, it has not paid much attention to China.
    The supply and demand pattern of propylene had an impact, and the total demand showed a good growth momentum


    .


    According to statistics, there are still 14 units planned to be put into operation in 2021, with a total production capacity of 4.
    95 million tons.
    In July, Qingdao Jinneng added production capacity, Gulei Petrochemical was put into operation in August, and Zhejiang Petrochemical Phase II was put into operation in September.
    The new production capacity in the early stage has been stable.
    Released, and supply-side pressure continues to build


    .


    Judging from the regional distribution of new production capacity in 2021, it is mainly concentrated in Northwest China, East China, and North China.
    At present, the main production areas of PP are 30% in Northwest China, 20% in East China, and 18% in South China, and the main consumption areas are 35% in East China and 35% in South China.
    27% in North China, 21% in North China, 38% in South China, 18% in North China, and 15% in East China in the next five years, followed by Northwest China and Northeast China.
    Central China and Southwest China are still relatively small in capacity expansion, and will absorb resources in the future.
    ability will be stronger


    .


    From the perspective of the polypropylene industry, the increase in apparent demand from 2019 to 2020 is due to the output support brought by the increase in production capacity.
    Considering the actual downstream demand of PP, the growth rate of general materials has slowed down.
    The injection molding industry accounts for the majority of the downstream demand structure of PP in China.
    Compared with the second field, it is mainly used in small household appliances, daily necessities, toys, automobiles and other industries, and the consumption trend is showing signs of magnification

    .

    With the continuous implementation of replacing steel with plastics and lightweighting of automobiles, the amount of plastics in automobiles is gradually increasing, including low-VOC automobile special materials, which have become the main research and development objects of major petrochemicals.
    From 2021 to 2024, China's PP still has structural development.
    opportunity

    .

    Based on the continuous upgrading of consumption and the gradual extension of the consumption field, the overall consumption of polypropylene in the next five years will be concentrated in the copolymer injection molding and transparent industries, and the average growth rate is expected to remain above 6%
    .

    In 2021, the plastics market is still in a complex and severe period.
    The advent of the era of large-scale refining and chemical industry will keep the growth rate of production capacity unabated.
    At the same time, the macro policy orientation will also lead to the potential space and new opportunities on the demand side.
    Under the situation of double growth of supply and demand, the overall market will fluctuate.
    Expansion, and because the new production capacity is mainly concentrated in the second half of the year, the price level in the first half of the year is better than that in the second half of the year, with polypropylene at 7500-8500 yuan / ton

    .

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