PP injection Molding

With the spread of the global financial crisis, the global polypropylene market surplus increasing pressure, China on how to address it? The industry believes that this is China’s development of polypropylene great opportunity to be the momentum to accelerate the pace of big and stronger, in pursuit of the time to take effect in 2035 to establish China’s polypropylene in the international discourse and the leading position.
Increasing international status
In 2007, the world’s polypropylene PP injection molding production capacity has reached 46,982,000 tons, the market consumption reached 44.351 million tons.
China’s total production capacity of polypropylene has reached 6.91 million tons, second only to the United States, the world’s second largest producer, has been basically formed a solvent, liquid bulk – Gas Law, intermittent bulk liquid, gas law a variety of production processes simultaneously, small, medium and large production patterns of production patterns coexist. At present, China’s polypropylene production from the joint production of ethylene enterprises accounted for about 40% to oil refinery by-product propylene as raw materials account for about 60%.
China is a big country of consumption of polypropylene, high-speed growth in the consumer market brought about by the new polypropylene industrial investment boom. Expected around 2010, China’s polypropylene industry will enter a new round of investment in the peak period, there will be nearly 6.8 million tons production capacity put into operation one after another (including the expansion in construction projects). In these new devices, in addition to the size of a small number of sets of 200,000-ton, the overwhelming majority of more than 300,000-ton, reaching a world-class scale, anti-risk ability. If these projects can be put into operation as scheduled, in 2010 China’s polypropylene production capacity will reach 13 million tons.
Problems can not be ignored
It should be noted that there still exist in our country polypropylene production is small and low levels of intensive, low value-added products and issues, polypropylene industrial technological level and production capacity, compared with foreign advanced level there is still a gap.
As the domestic consumption of polypropylene increased rapidly, while the growth rate of output is relatively small, resulting in the supply of general-purpose resin grades, while high profile products vacancies serious. In the high-end market and some mid-market monopoly of foreign manufacturers by virtue of geography and low-cost advantages will continue to expand exports to China. Polypropylene plant in China are usually associated with the ethylene plant and oil refineries are built, mostly small and medium-sized devices, devices are too scattered layout. North devices polypropylene production of some commodities in addition to local processing of woven products, the other product south, transport costs are too high. PRD market saturated, the Yangtze River Delta with limited market potential. To seize the opportunity, some of polypropylene downstream processing enterprises in the strategic north, but the Northeast and Northwest market distance “stronger, bigger,” there is distance. Due to intense competition, polypropylene industry reshuffle is unavoidable, small and medium-sized device to gradually withdraw from areas of production will become an inevitable outcome.
Speed up development to meet the challenges
At present, the global polypropylene market surplus will face tremendous pressure. New Project in the Middle East has become a hot spot for polypropylene, the Middle East, several large-scale export-oriented devices put into operation, low-cost products will be an influx of large quantities of the country, and will gradually replace South Korea, Japan and other traditional export position as a major power, when China’s polypropylene business will also meet with strong shocks. China’s expansion in the construction of new capacity will also be put into production of polypropylene, the market will be a rapid increase in supply. Large amount of new capacity, industry restructuring intensified, but at the same time enterprises high raw materials costs, which will force enterprises to lower the operating rate, and the entire polypropylene PP injection molding industry profitability will be different effects. As a result of new capacity is too concentrated, the market will focus on capacity expansion to digest the peak of the formation of capacity, competition to enter the white-hot state. In this regard, China’s polypropylene industry must speed up the development of the challenge.
First, stepping up the expansion of polypropylene in the construction projects to meet the domestic market consumption. Since 2008, Zhongyuan Petrochemical, Maoming Petrochemical successfully put into operation, such as polypropylene, as well as refining and other large enterprises in Ningxia started a new round of expansion in Jianhe prelude to promote domestic production of polypropylene and enhance product quality, expanded polypropylene production upgraded to world-class scale, the project has increased the overall strength and ability to resist risks. Judging from the pattern of production capacity, the vast majority of radiation Sinopec new capacity to the Pearl River Delta and Yangtze River Delta and Bohai Rim, China and oil installations all built on old industrial bases in northeast and northwest of the development of the region.

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Secondly, to intensify the industry restructuring and mergers and acquisitions among enterprises, promote China’s chemical industry in the market competition. Domestic chemical enterprises should mainly rely on to improve the production scale, improve production efficiency to lower production costs, industry restructuring through mergers and acquisitions of domestic policies to promote the rapid development of chemical enterprises to change the past situation of high costs. That is, to develop into the upstream suppliers to reduce procurement and marketing costs; to use technological innovation to reduce product costs; an increase in production scale to reduce the costs of environmental protection products.
Third, to expand the international export trade. At present, the focus of the world’s polypropylene market is eastward, China with a close neighbor of India and China will become the world’s polypropylene consumption growth. In recent years the rapid growth of India’s economic development momentum, the rapid growth of disposable income, which significantly boosted consumption growth. India is Asia’s huge automotive, appliance and packaging of various food markets in the world, coupled with India is trying hard to improve the infrastructure, all this has stimulated strong growth in consumption of polypropylene, which will be a large number of imports of polypropylene derivatives. China’s polypropylene PP injection molding industry strength necessary to accelerate the use of geographical advantages of radiation neighbors, and the expansion of international export trade.

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