PP Box Raw Material Introduction Series Nine

- Apr 27, 2018-

Polypropylene price factors


  1, crude oil impact


    The price of oil is the source of plastic prices. International crude oil is an important indicator of economic prospects. People often judge the future economic conditions through the fluctuation of international crude oil. Changes in international crude oil prices have a profound effect on the trend of the entire plastics market including polypropylene, but they are mostly reflected in the impact on the market mentality, but have little impact on the transmission of cost factors, and the fluctuation of international crude oil is passed on to domestic costs. The impact is about 2-3 months.

   

 2, propylene monomer effect


    As the direct raw material of polypropylene, propylene monomer mainly affects the production cost of polypropylene, and at the same time it affects whether the device can start normally. However, because the propylene monomer is greatly affected by crude oil fluctuations, marketers and downstream manufacturers tend to focus more on international crude oil, and the propylene monomer is relatively less focused, making the impact of propylene on the market price of polypropylene reflected in the market. Not obvious.

   

 3, the impact of downstream consumption on the price of polypropylene


    Since the end of the last century, the structure of China's PP products has gradually approached the international consumption structure. In the weaving products market, domestic materials dominate, and plastic woven bags produced from imported materials are mostly used for export, and only a small amount are sold domestically. Although the absolute amount of consumption in this area is large, the proportion of total PP consumption has been decreasing year by year, from 48% in 2006 to 42% in 2012. Large-scale, heavy-duty and high-strength, antistatic, and resistant Aging and other packaging bags will be the overall development trend of woven products in the future.


    At the same time, in the PP downstream products, PP packaging, PP transparent boxes, PP plastic boxes, fiber and injection molding products have risen in spite of the sudden increase in the number of double-digit years. In the fiber products market, most of the middle and low-end products are made of domestic materials, and the raw materials needed to produce high-grade polypropylene products, such as fine denier, ultra-fine denier, thin non-woven fabric, and strong silk, are mainly imported. It is estimated that the proportion of PP consumption in fiber products to its total consumption will increase from about 11% in 2006 to about 14% in 2015.


    4, the impact of national policies


    For the plastics industry, the introduction of a policy is a barometer of business development, and even directly affects the direction of development of the plastics industry. When the plastics industry is overcapacity, the elimination of backward production capacity becomes a must. When the financial crisis struck, the export trade of the plastics industry was greatly affected. At this time, it was necessary for the state policy to support the development of domestic demand. The relevant national policies were the development direction of the plastics industry. Due to the insufficient capacity of polypropylene in China, the foreign dependence is about 28%. The state encourages imports. Since January 1, 2008, the import tariff for resins including polypropylene has been adjusted from 7.6% to 6.5%. There are no other policy restrictions. .

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