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Why does the price of polypropylene, the key raw material, continue to decline due to the shortage of respirators?

category:Finance
 Why does the price of polypropylene, the key raw material, continue to decline due to the shortage of respirators?


In terms of materials, non-woven fabric is an important raw material for the production of medical masks, protective clothing, surgical clothing and other medical consumables. The high melting finger non-woven fabric made of polypropylene is the best choice.

The main material that brings virus filtering effect to the mask is the m layer in the middle - melt blown non-woven fabric. Melt blown non-woven fabric is made of polypropylene material called high melt finger fiber. It is a kind of ultra-fine electrostatic fiber cloth, which can effectively use static electricity to absorb virus dust and droplets.

Is there a gap in the supply of polypropylene products at present?

According to the data released by China Textile Business Association, in 2018, the output of masks in China is about 4.54 billion, with a demand of 4 billion. According to the data from the Ministry of industry and information technology, the maximum daily output of masks is 20 million, and the annual output is more than 7.3 billion according to the maximum production capacity.

According to the public data, one ton of high melting finger fiber can produce about 250000 bacterial masks. According to this calculation, the high fusible finger fiber used in the production of bacterial mask is about 80 tons per day, and the annual consumption is 28000 tons.

According to jinlianchuang data, in 2019, the domestic polypropylene production capacity will be 25.49 million tons, and the output will be 20.963 million tons. Among them, the output of high melting finger fiber is 880000 tons, accounting for 4.2% of the total, which is far greater than the production capacity of mask.

Li Li, a senior analyst of jinlianchuang plastics, told the interface news reporter that the demand for raw materials used to produce bacterial mask accounts for a small proportion of the overall output. This wave of mask demand is hard to have a significant impact on the overall supply and demand of polypropylene.

The supply of raw materials is abundant, so why is there still a shortage of masks in the market?

According to Jin Lianchuangs analysis, in the early stage of the outbreak of the new crown epidemic, the short-term purchase and stock up of residents led to a rapid shortage of goods in the market; during the Spring Festival, most mask manufacturers were in the state of holiday, because of the meager profit of masks, most factories only maintained the state of production according to orders, with less stock up, and the lack of holiday personnel made it difficult to quickly resume production.

In addition, due to the spread of the epidemic during the Spring Festival, vehicle restrictions have been introduced throughout the country, the logistics transportation has been severely restricted, and the transportation of finished masks and the supply of raw materials have been greatly restricted.

In addition, the demand for civilian masks is expected to decline rapidly after the epidemic. The demand for medical and industrial use is relatively stable, and the factorys intention to expand production capacity is not very strong.

As polypropylene has the characteristics of chemical resistance, heat resistance, electrical insulation, high mechanical strength and so on, in addition to the production of masks, it has also been developed and applied in many fields such as machinery, automobiles, electronic appliances, construction, textile, packaging, agriculture, forestry, fishery and food industry.

Domestic polypropylene products are mainly used in the production of woven products, film products, injection molding products and textile products. Among them, woven bags, packing bags and other woven products are the largest consumer areas of polypropylene in China, and injection molding products are the second largest consumer areas.

In recent years, with the rapid expansion of new polypropylene production capacity, the supply of general-purpose polypropylene materials exceeds the demand, and the market competition is fierce.

The source of propylene, the raw material of polypropylene, is very diverse. In addition to the by-product propylene of traditional ethylene plant and that of refinery, the development of methanol to olefin process, propane dehydrogenation and other processes has also made the coal (or purchased methanol) to polypropylene project the main body of new capacity in recent two years.

Sinopec, PetroChina and national energy group are the main producers of polypropylene in China. In the situation of oversupply and new domestic production capacity, polypropylene price is in a downward trend. According to jinlianchuang data, the ex factory price of medical fiber material Y40 / y40x in Jinan Refinery before the festival is 7950 yuan / ton, which has fallen to 7600 yuan / ton. Li Li told the interface news reporter that in recent years, major petrochemical enterprises have switched to produce polypropylene fiber materials, but due to transportation restrictions, the products have not reached the downstream factories in full, and the upstream production enterprises have a large inventory pressure. Li Li said that if the epidemic can not be effectively curbed in the short term, it will be difficult for logistics and downstream factories to start to recover, the inventory pressure of polypropylene production enterprises will not be improved in the short term, and prices will continue to fall. Source: editor in charge of interface news: Zhang Meiyu nf2100

Sinopec, PetroChina and national energy group are the main producers of polypropylene in China.

In the situation of oversupply and new domestic production capacity, polypropylene price is in a downward trend.

According to jinlianchuang data, the ex factory price of medical fiber material Y40 / y40x in Jinan Refinery before the festival is 7950 yuan / ton, which has fallen to 7600 yuan / ton.

Li Li told the interface news reporter that in recent years, major petrochemical enterprises have switched to produce polypropylene fiber materials, but due to transportation restrictions, the products have not reached the downstream factories in full, and the upstream production enterprises have a large inventory pressure.

Li Li said that if the epidemic can not be effectively curbed in the short term, it will be difficult for logistics and downstream factories to start to recover, the inventory pressure of polypropylene production enterprises will not be improved in the short term, and prices will continue to fall.