Varieties - PP futures

pp futures

Polypropylene (pp) is a thermoplastic resin and is one of the five general-purpose synthetic resins. The appearance is white granules, tasteless, non-toxic, due to the regular crystal structure, with easy processing, impact strength, flexural resistance and good electrical insulation and other advantages, in the automotive industry, household appliances, electronics, packaging and building materials and furniture and other aspects have a wide range of applications.

The structural characteristics of pp determine its five major characteristics: (1) Its molecular structure is similar to polyethylene, but the carbon atoms in the carbon chain carry a methyl group (-ch3). (2) Usually translucent colorless solid, odorless and non-toxic. (3) Due to the regular structure and high crystallization, the melting point is as high as 167c, and the heat resistance and steam disinfection of the product are its outstanding advantages. (4) Density of 0.90g/cm, is the lightest general plastic. (5) Corrosion resistance, tensile strength of 30mpa, strength, rigidity and transparency are better than polyethylene.

Polypropylene classification methods are diverse, and are divided into isocured, interval gauge and random according to the spatial position of methyl (ch3) in polypropylene molecules; According to the use, it can be divided into narrowband, injection molding, extrusion film, fiber, extrusion and other levels; According to the monomer species, it is divided into homopolymer polypropylene and copolymer polypropylene.

China is one of the world's largest producers of polypropylene, with polypropylene production of 22.348 million tons in 2019, accounting for about 31.2% of the world's total output. China is also the world's largest consumer of polypropylene, with 25.4956 million tons of polypropylene consumption in 2019, accounting for about 35.9% of the world's total consumption, and the market size exceeds 229.5 billion yuan at the average price of 000 yuan / ton. Driven by strong domestic demand, China's self-produced polypropylene is almost all consumed in China, with exports of only 340,000 tons, and the import volume of polypropylene in 2019 is 3.49 million tons, and the import dependence is about 13.7%.

China's PP production capacity is mainly distributed in East China, South China, Northeast China and Northwest China, consumption is mainly concentrated in East China, South China and North China, and imported PP mainly flows into East China and South China. Therefore, the mainstream of the overall national trade is concentrated in the Yangtze River Delta region represented by Jiangsu, Zhejiang and Shanghai, the Pearl River Delta region represented by Guangdong and the north China coastal area represented by Shandong, while the northwest and northeast are net outflows, the supply of the southwest region is mainly transferred from the northwest and south China, and there is also a small amount of commodity flow between east China and north China and south China. The northwest region is the largest outflow of pp in China, which is transported to East China, South China, Central China, North China and other places, and the mode of transportation is mainly railway. A large part of the northeast region also needs to be digested by foreign transport, mainly sold to North China and East China, and the mode of transportation is railway or transferred from Dalian to ship. East China, South China, north China are the main consumption areas of PP (consumption accounts for more than 0% of the total), and most manufacturers have set up distribution points in these three regions, and trade is very active. There is also a small amount of commodity flow between the three places, and due to the close distance between East China and North China, it is usually transported by car, and there are generally more sea freight between South China and East China.

The main factors affecting the price change of polypropylene

An effect of upstream raw materials

The impact of changes in upstream raw material prices on polypropylene is mainly reflected in the cost, according to the current technology, polypropylene comes from crude oil, coal, purchased methanol, purchased propylene, pdh five. Among them, the two paths of crude oil and coal account for nearly 80, and polypropylene producers generally sign long-term agreements with coal companies, so the impact of coal prices on polypropylene is relatively small. As the main raw material of polypropylene, the price of crude oil has a greater impact on the trend of polypropylene. The rise in the price of crude oil is transmitted downstream through production costs and other means, making the price of polypropylene rise; The decline in crude oil prices has caused a blow to the mentality of market merchants and downstream manufacturers to a certain extent, making the market wait-and-see atmosphere continue to be strong, the willingness to receive goods downstream is reduced, and the market inventory is elevated, resulting in a decline in the price of polypropylene.

Ii. Impact of downstream demand

The market price of polypropylene will also fluctuate with changes in downstream demand. When the economy enters the upward cycle, the downstream plastic products industry develops rapidly, the demand is strong, and the supply is relatively insufficient, which will promote the rise in the market price of polypropylene; Conversely, when the economy enters a downward cycle, the demand for downstream industries weakens and the upstream supply is sufficient, market prices will decline.