The profit margin of different types of polypropylene is nearly 3 times worse!

China's polypropylene industry is likely to have excess in the future.
In this context, how to avoid the possible excess risk of the polypropylene industry, the main direction of the industry lies in the differentiated selection of different types of polypropylene products
.
However, due to the large number of production types of polypropylene, as well as the limitation of the consumption market size of the products and the opacity of precise market information, the precise selection of production scheduling plans according to the market has become a major obstacle for polypropylene production enterprises
.

2021 is a big year for China's polypropylene industry, and it is also a boom year for many chemical products.
Most of the chemical products will see a sharp rise in market prices in 2021, especially the main raw materials of polypropylene, propylene, methanol, propane, coal, coal, etc.
naphtha and other products, which also leads to a weaker overall prosperity of China's polypropylene industry in 2021
.
Statistics show that in 2021, the average profit level of China's polypropylene industry is 1086 yuan / ton, and the average gross profit margin is about 13%
.

What is this concept?

The profit margin level of polypropylene production in China has gradually decreased since 2017, and will reach the lowest level in the industry in the past few years by 2021
.
During 2021, some polypropylene production in China has experienced periodic losses
.
This is also the initial manifestation of the imbalance between supply and demand in the industry, and the result that the rising cost of raw materials cannot be effectively transmitted
.

For the production profit level of different types of polypropylene products, due to the large differences in production costs, there are also large differences in production economics
.
According to the unit consumption of comonomer, type and cost of antioxidant, type and cost of antistatic agent, type and cost of light stabilizer, type and cost of nucleating agent, the production cost and profit margin of different types of polypropylene can be roughly calculated space
.

According to the calculation results, in terms of the production profit rate of different types of polypropylene in China in 2021, the production profit rate of hot water pipes is the highest, reaching about 29%, followed by ternary copolymer film, with a production profit rate of 26%.
% or so
.
At present, the production profit margin of polypropylene with a large volume is about 11% in 2021, and the profit margin of coating material production is the lowest, at about 7.
9%
.

Hot water pipes have always been the most profitable products in the polypropylene industry, but the high-end brands of hot water pipes have high profitability, but are limited by production technology
.
Coating materials are a low-profit product in the polypropylene industry, because only two domestic companies, Shanghai Petrochemical and Changling Refinery, are producing high-end coating materials, while ordinary or low-end coating materials are mostly replaced by fiber materials.
For example, most grades of homopolypropylene are used in the field of coating materials
.

The high-end coating materials in production can be used in high-end woven bags, some non-woven coating and other fields
.
Imported coating products, such as South Korea's Daelim PR770B, are used as coating seam adhesives in the woven bag packaging industry
.

According to the comparison of the production profit rate of different polypropylene grades, the drawing material with the largest production scale accounts for about 33% of the production scale, but the production profit rate is only less than 12%
.
It can be seen that the homogenization caused by the scale of the market has become the main factor limiting the profit margin of different types of polypropylene production in China
.

In addition, the ternary copolymer film with the lowest proportion of production scale, the proportion of production scale is only about 0.
4%, but the profit margin ranks second, reaching about 27%
.
Ternary copolymer films are subject to the shortage of supply of the third comonomer, resulting in a lower production scale, which is also the reason for a higher profit level
.
It can be seen that the imbalance of supply and demand caused by technology has become a key factor affecting the profit of polypropylene production
.

In order to achieve breakthroughs in the production of different types of polypropylene, on the one hand, it is affected by market consumption, and it is necessary to pay close attention to the polypropylene production opportunities brought about by consumption changes;
.
It is believed that with the development of China's polypropylene industry in the future, China's polypropylene industry will inevitably undergo simultaneous upgrading of consumption and technology, so as to achieve a breakthrough in China's polypropylene industry in terms of consumption and technology
.