2021 PP Annual Events

1. Fujian Meide Petrochemical PDH Phase I Project was successfully put into operation and produced qualified propylene products

On January 30, the 660,000-ton/year propane dehydrogenation phase I of Fujian Zhongjing Petrochemical's upstream Meide Petrochemical successfully produced qualified propylene products. The status quo of external mining of propylene, the upstream industrial chain has been improved.

2. The United States has encountered extreme cold in a century, and the high price of the US dollar has led to the opening of the export window

In February, the United States encountered extremely cold weather, which was once in a century, causing the local polypropylene plant to be shut down. The price of the US dollar market rose, and the domestic polypropylene price became a depression. The export window was opened significantly in the first quarter.

3. In the post-epidemic era, the demand for non-woven fabrics has fallen, and PP fiber materials are difficult to meet the market last year

In 2020, due to the impact of the public health incident, the demand for non-woven fabrics will increase significantly, which will drive the price of fiber materials to strengthen. Entering 2021, in the post-epidemic era, the non-woven fabric industry will no longer expand its capacity, and the elimination of backward production capacity will lead to industrial concentration. The demand for PP fiber material is becoming more and more stable, and the price cannot reflect the obvious advantage.

4. In the second quarter, the centralized production of polypropylene will increase the supply pressure

In April, Tianjin Petrochemical’s 200,000 tons/year, Donghua Ningbo Phase II 800,000 tons/year, and Sino-Korea Petrochemical’s 300,000-ton/year polypropylene units were released in the second quarter. The unprecedented supply pressure in the market suppressed the market. mentality.

5. The cost pressure of the downstream washing machine industry is increasing, and the performance of the PP copolymer market is sluggish

According to data from the National Bureau of Statistics, the output of domestic washing machines in my country has reached 36.199 million units from January to May 2021. From the monthly data, the output of washing machines has shown a downward trend month by month, and the alarm bell of weaker demand has sounded. For polypropylene copolymerization The market had a significant impact.

6. The production capacity continues to be released, and the market mentality is becoming more and more sluggish

At 16:30 on August 18, 2021, the 300,000-ton/year high-performance polypropylene plant of Liaoyang Petrochemical Company was successfully put into operation and produced qualified products. At 1:16 p.m. on August 17th, the largest petrochemical project jointly owned by both sides of the Taiwan Strait - Fujian Zhangzhou Gulei Refinery and Chemical Integration Project's ethylene unit cracking furnace was put into charge. The two sets of devices released production capacity in a concentrated manner, and the market's pessimistic expectations increased.

7. The implementation of the dual-control policy on energy consumption resulted in a significant increase in PP costs

Entering the third quarter, the energy consumption results of various provinces were released. After the energy consumption policy was introduced, the panic in the black market intensified. The rise in coal prices drove the price of polypropylene to skyrocket, and the profit from coal-to-olefins suffered varying degrees of loss.

8. Power curtailment and power policy adjustments have led to a decline in the start-up of the polypropylene downstream industry

On September 16, the National Development and Reform Commission issued the "Plan for Improving the Dual Control System of Energy Consumption Intensity and Total Volume". In addition, facing the pressure of the "dual control" assessment at the end of the quarter, Guangdong, Zhejiang, Jiangsu, Shandong and other places have successively issued power cuts from late September. , production restriction policy. Downstream enterprises' off-peak production, orderly electricity consumption, and "one-size-fits-all" power cuts have attracted market attention.

9. The five major raw materials of polypropylene have entered a state of comprehensive loss

In November, the prices of imported raw materials propane and crude oil soared, coupled with the high domestic black prices, all the five major sources of polypropylene raw materials suffered losses to varying degrees, but demand was also sluggish, so the market continued to fluctuate.

10. The trend of policy orientation changes the cost and profit of coal-based PP

On October 20, the National Standing Committee clearly stated that it will crack down on speculation in the coal market in accordance with the law. At the same time, the National Development and Reform Commission issued three articles on October 19 stating that it will take all measures to intervene in coal prices in accordance with the law. As a result, coal prices have fallen, coal-to-olefins cost pressure has been eased, and profits have been restored.