The self-sufficiency rate of polypropylene is 82%! What are the directions for the development of high-end polypropylene?

The self-sufficiency rate of polypropylene is 82%! What are the directions for the development of high-end polypropylene?

In 2020, 14 sets of polypropylene plants will actually be put into operation in my country, with an additional supply capacity of 4.35 million tons/year. As of the end of 2020, my country's polypropylene production capacity has reached 32.98 million tons/year, breaking through 30 million tons/year for the first time. In 2020, my country’s polypropylene production will reach 28.36 million tons, imports will be 6.554 million tons, exports will be 424,500 tons, apparent consumption will be 34.49 million tons, and the self-sufficiency rate will be 82%.

Polypropylene has moved from relatively overcapacity to absolute overcapacity, and the development of special materials is on the line!

At present, the high-end polypropylene special materials with a high degree of external dependence in the domestic market mainly include two categories. One type is high-end grades of bulk varieties, such as high crystallinity polypropylene (HCPP), high rigidity polypropylene (HSPP) and high melt strength polypropylene (HMSPP). The other category is polypropylene products of special varieties, such as ultra-low ash polypropylene products and metallocene polypropylene products.

HCPP: Copolymer products mainly rely on imports, while domestic products are mainly homopolymer

High crystallinity polypropylene (HCPP) can be divided into two categories: copolymerization and homopolymerization. Among them, copolymerized products are mainly used in downstream fields such as automobiles and household appliances, and homopolymerized products are mainly used in the food packaging industry. In 2019, the consumption of HCPP in the Chinese market was approximately 500,000 tons. The automobile and packaging industries are the largest downstream applications of HCPP, with consumption accounting for 70% of the total consumption.

China initially has HCPP production capacity, but when it is applied to automobiles and other fields, there is still a gap with imported products. China's copolymerized HCPP mainly relies on imported supplies, and imports account for about 90%. The main suppliers are SK, Borouge, LyondellBasell, Zhongsha Tianjin, Hanwha Total Petroleum, etc. Homopolymer HCPP is mainly a domestic product. The main suppliers are Luoyang Petrochemical, Guangzhou Petrochemical, Lanzhou Petrochemical, Panjin Huajin, Zhenhai Oil Refinery, etc.

　HSPP: Middle and low melting index products show a trend of surplus, and products with melting index greater than 30 are totally dependent on imports

HSPP mainly defines it from the perspective of impact strength, thereby improving the toughness of the modified material, and helping the modified material company to minimize the loading of the plastomer, thereby simplifying the formulation.

In 2019, HSPP consumption in the Chinese market was about 350,000 tons, mainly used in downstream fields such as automobiles, toys and household appliances. Among them, automobiles are the largest downstream consumption area, accounting for more than 50%. Toys are the second largest consumer sector, accounting for more than 30%. As the automotive industry's requirements for materials move toward lighter weight and higher performance, the application of China's HSPP in the automotive field will continue to grow in the future.

In China, there are many suppliers of HSPP products, and domestic products occupy a major market share. The supply of low- and medium-melt index products is in excess, while HSPP products with a melt index greater than 30 are still completely dependent on imported products. Qilu Petrochemical, Formosa Ningbo and Yanshan Petrochemical have become major product suppliers in the Chinese market. More than 10% of HSPP products are still provided by foreign manufacturers, such as Borouge, Lyondellbasell and Exxonmobil.

　HMSPP: The market is small but the profitability is fair

　There is still a gap in the quality and reputation of China's HMSPP domestic products and imported products. The Chinese market of HMSPP products is mainly provided by Shanghai Petrochemical, Singapore TPC and South Korea LG Chem.

HMSPP market demand is only about 52,000 tons, of which 95% of the consumption is used for polypropylene foaming, and also for hollow product injection molding and film fields. Due to the small scale of the downstream EPP market and the weak bargaining power of EPP manufacturers, HMSPP products are in a state where the market scale is small but the profitability is acceptable.

　Ultra-low ash polypropylene: 95% of the Chinese market relies on imports

The global ultra-low ash polypropylene is mainly supplied by Korea Petrochemical, Borealis, TPC and Sinopec Zhongyuan Petrochemical, while the supply of Korea Petrochemical, Borealis and Singapore TPC accounted for more than 90% of the total global supply. In the Chinese market, 95% of ultra-low ash polypropylene relies on imports.

In 2019, the Chinese market consumed a total of 104,000 tons of ultra-low ash polypropylene. The battery separator industry is the most widely used, followed by the capacitor film industry, with a total consumption of 93%. Battery separators and capacitor films are the main application areas of low-ash polypropylene, so their average price remains at the same level as the overall average price. Automobiles, baby products and household appliances applications are high value-added areas, but the market is relatively closed, with small market capacity and difficult market development. It is estimated that in the next 10 years, the consumption of ultra-low ash polypropylene will increase at a rate of more than 7%.