Abstract:With the sustained and stable growth of China's economy, China's polypropylene fiber enterprises have gradually increased the research and development of differentiated polypropylene, and strive to develop the application field of polypropylene. At the same time, the textile technology of downstream textile enterprises is constantly improving, and the production capacity and production level of upstream raw material polypropylene manufacturers are also constantly improving. According to the China Chemical Fiber Industry Association, China's polypropylene fiber output increased from 294,100 tons to 428,000 tons from 2017 to 2021. In 2022, under the superposition of multiple complex factors such as repeated epidemics, geopolitical conflicts, and high inflation, the production of polypropylene fiber industry in mainland China will slow down, and the output will show negative growth. In 2022, China's polypropylene fiber will be 413,000 tons, a year-on-year decrease of 3.50%.
1. Definitions and Classification
Polypropylene fiber, also known as polypropylene fiber, is a synthetic fiber made from propylene, a by-product of petroleum refining. Polypropylene has the characteristics of environmental protection, light weight, high strength, good acid and alkali resistance, good warmth, non-water absorption, poor dyeing, poor heat resistance, and poor aging resistance. Polypropylene is divided into polypropylene filament and polypropylene staple fiber according to the length of the product after spinning processing.
Second, the business model
1. Procurement mode
The raw materials purchased by polypropylene fiber enterprises are polypropylene, masterbatch and oil. Polypropylene fiber enterprises comprehensively consider factors such as cash flow and inventory of raw materials, and increase the purchase volume when the price is relatively reasonable under the condition of ensuring the smooth progress of production, and reduce the purchase volume on the contrary. In the selection of suppliers, fully investigate the information of the supplier, including quality assurance capabilities, supply capacity, timeliness of delivery, etc., to determine the cooperative relationship.
2. Production mode
Polypropylene fiber enterprises implement a production mode based on sales and production. Since polypropylene cannot be dyed, it is necessary to use masterbatch coloring before spinning, and polypropylene fiber enterprises mainly arrange production according to the color and function required by customers. Polypropylene fiber enterprises are mainly independent production, and there is no outsourcing processing of polypropylene fiber finished products, and there are some raw materials outsourcing processing, including waste silk recycling outsourcing processing and masterbatch outsourcing primary processing. The details are as follows:
Waste filament recycling and outsourcing processing. Due to the loss of start-up operation and switching product varieties, polypropylene fibers will inevitably produce waste yarn in the production process. In order to respond to the national policy of renewable resource utilization, the company recycles waste silk for secondary use on the premise of ensuring product quality. Some polypropylene fiber enterprises entrust external companies to process waste silk into polypropylene pelletizing for the production of black or dark polypropylene filaments. Waste wire processing mainly involves crushing, extrusion, granulation and other processes.
Masterbatch outsourcing primary processing. According to the specific color and functional requirements of some customers for polypropylene filament, polypropylene fiber enterprises add masterbatches in the production process to achieve different colors and functions. Polypropylene fiber enterprises independently purchase toner and functional materials, and entrust external companies to process toner and functional materials into masterbatches that meet the specific requirements of the company. The primary processing of masterbatch involves the mixing and stirring, kneading, extrusion and granulation of polypropylene and toner. After the enterprise takes back the masterbatch of the initial processing, it is diluted and color-matched. The key to the coloring of polypropylene products is color matching, that is, the masterbatch of different colors and functions is mixed in a certain proportion to blend the specific colors and functions required by customers. The technology of masterbatch primary processing is not the core link of polypropylene coloring.
3. Sales model
Polypropylene fiber customers are mainly industrial filter cloth in the industrial field and textile production enterprises such as luggage, clothing, water pipe cloth covers, door and window wool tops in the civil field. Polypropylene fiber enterprises mainly sell products through direct sales, and only some customers are trade customers. Because different customers have different needs for the color and functionality of products, and the needs of the same customer also change according to the different end products, polypropylene fiber companies deeply integrate with customers, cooperate with customers to develop products and functions, and implement product and service customization. In the pricing of product sales, based on the cost of raw materials and manufacturing costs, combined with market supply and demand, order size, product technical complexity and other factors, the sales price is formulated after comprehensive consideration.
3. Industry policy
1. Competent authorities and regulatory system
The supervision of the polypropylene fiber industry in mainland China is mainly managed by a combination of market regulation, government macro-control and industry self-discipline. Relevant administrative departments include the National Development and Reform Commission, the Ministry of Industry and Information Technology and the China Chemical Fiber Industry Association. The National Development and Reform Commission and the Ministry of Industry and Information Technology are responsible for the formulation of chemical fiber industry policies, and supervise and inspect their implementation, study and formulate industry development plans, guide industry structural adjustment, implement industry management, and participate in industry system reform, technological progress and technological transformation, quality management, etc.
China Chemical Fiber Industry Association is a self-regulatory organization of the chemical fiber industry in mainland China, and has a polypropylene professional committee to undertake the guidance, contact, exchange, coordination, promotion and service functions of the polypropylene industry. The main functions of the polypropylene branch include: to play the role of a bridge and link between the government and polypropylene enterprises and institutions, to guide and promote the orderly, efficient and healthy development of the polypropylene industry in mainland China, to promote the technological progress of the polypropylene industry, to enhance the technical cooperation between enterprises and scientific research units, to improve the ability of independent innovation, production technology, The technical level and R&D strength promote the transformation of scientific and technological achievements and accelerate the pace of development of the mainland polypropylene industry; strengthen the relevant technical standards; standardize the industry behavior and enhance the market competitiveness of the mainland polypropylene; carry out research activities on the development of the polypropylene industry at home and abroad; carry out the promotion and application of polypropylene; carry out energy saving, consumption reduction and clean production according to the characteristics of the industry, and promote the sustainable development of the mainland polypropylene industry; carry out international and inter-industry exchange activities to improve the status of the mainland polypropylene industry in the global competition.
2. Industry-related policies
In recent years, the state has issued a series of policies to guide the development of polypropylene fiber industry. For example, the "Catalogue for the Guidance of Industrial Structure Adjustment (2024 Edition)" lists the development, production and application of high-performance fibers and products, and the technology and application of polypropylene (PP) filament and staple fiber production from polypropylene recycled materials as encouraged categories. The conventional polypropylene spunbond nonwovens production line with a single-line production capacity of ≤ 1,000 tons/year and a width of ≤2 meters is listed as a restricted category. The polyethylene polypropylene composite waterproofing membrane and polyethylene polypropylene composite waterproofing membrane (polyethylene core material thickness below 0.5mm) produced by the secondary heating composite molding process are listed as the elimination category.
Fourth, the development process
Among the major chemical fiber varieties in the mainland, polypropylene fiber is a late development variety. China began the research and development of polypropylene fiber in the 80s, and by the end of the 20th century, it has successively developed differentiated polypropylene fibers such as fine denier, flame retardant, antibacterial, anti-ultraviolet, anti-aging, and far infrared. At the beginning of the 21st century, the industry has further carried out the research and development of polypropylene fiber products such as high-strength, anti-ultraviolet, dyeable, fine denier, and ultra-fine denier. Since 2010, with the application and promotion of polypropylene fiber in the field of functional fabrics and industrial fabrics, the polypropylene fiber industry has begun to vigorously develop differentiated polypropylene such as high-strength and ultra-fine denier, and continuously improve the performance of polypropylene products.
Fifth, industry barriers
1. Barriers to product development
Polypropylene fiber manufacturers need to continue to develop high-tech and differentiated polypropylene fiber products in order to meet the special needs of downstream customers for green, differentiated, and personalized consumption upgrades, so they have high product development barriers. Specifically, first of all, enterprises need deep technical precipitation and industry experience, accurately identify customer needs, carry out technical translation and conversion, and develop customized products that meet specific applications. Secondly, the R&D of polypropylene requires professional knowledge such as polymer materials, and the R&D process needs to go through repeated trials and formula debugging, and R&D personnel need to have rich experience accumulation to ensure the smooth completion of product development. At the same time, in order to make polypropylene products achieve specific colors and functions, the production process needs to be precisely controlled by technical equipment and process parameters, and the technical support of R&D library data is required, so it is difficult to develop polypropylene to process feasibility. Therefore, the ability to develop high-tech and differentiated products will become a barrier for new entrants.
2. Production process barriers
The production process barriers of polypropylene fiber products are high, which is reflected in the following aspects: First, the production of high-performance index products requires fine control of the temperature, pressure, wind temperature, wind speed and other parameters of spinning, and the need for enterprises to be equipped with advanced production equipment, continuously optimize the production process, and accumulate production experience. Second, there is a lack of special equipment for the production of polypropylene fibers in the industry, usually using technical equipment for synthetic fibers such as polyester, but due to the different physical properties of polypropylene and polyester such as melting point and glass transition temperature, polypropylene manufacturers are bound to carry out professional transformation of equipment to improve the applicability of production and the quality and performance of products. Third, unlike the large-scale production and mature equipment of the polyester industry, most of the technology-based enterprises in the polypropylene industry are small-batch and multi-variety production modes, and enterprises also need to optimize the process to improve the flexibility of production. As a result, new entrants will face high barriers to the production process.
3. Customer market barriers
The upstream and downstream of the polypropylene fiber industry usually form a relatively stable supply chain relationship, which forms a certain barrier to new entrants. On the one hand, due to the slight differences in the quality and technical indicators of the fibers produced by different enterprises, for downstream textile enterprises, this difference in raw material indicators will lead to changes in their production process parameters, therefore, downstream textile enterprises usually choose relatively stable polypropylene fiber suppliers to avoid frequent adjustment of process parameters to improve production efficiency and ensure the stability of product quality. On the other hand, for the development and application of differentiated products, after the establishment of the cooperative relationship, the technical exchanges between the two sides have deepened, and the cooperative relationship is relatively stable, and downstream enterprises will not easily change suppliers. Therefore, there are customer market barriers in the polypropylene fiber industry.
4. Financial barriers
The purchase unit price of polypropylene fiber, the main raw material of polypropylene, is higher, the amount is larger, and the payment settlement conditions of the main production enterprises of the above-mentioned raw materials are more harsh, so the raw material procurement and production and operation of the enterprise need a large amount of working capital for turnover; The above two aspects have higher requirements for the company's funds. Therefore, the polypropylene fiber industry has high financial barriers.
Sixth, the industrial chain
From the perspective of the industrial chain, the upstream of the polypropylene fiber industry chain is a supplier of raw materials such as polypropylene and a supplier of equipment such as textile machinery. Midstream polypropylene fiber manufacturing enterprises, including the manufacture of polypropylene staple fiber and polypropylene filament. The downstream is the application field of polypropylene fiber, including clothing, home textiles, luggage, industrial filter cloth, disposable hygiene products, engineering geotextiles and other products. The polypropylene fiber industry chain is shown in the following figure:
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