Recently, the PP (sheet) material market has shown some significant development trends.
Now, China is still in the rapid expansion range of polypropylene industry. According to statistics, the total number of new polypropylene production plants in 2023 is about 5 million tons/year, and the capacity growth rate is more than 20%. It is expected that the capacity expansion scale in 2024 will be more than 8.8 million tons/year, when China's annual polypropylene production capacity will reach 48.57 million tons/year, and the capacity growth rate will continue to hit a new high.
From the demand side, the growth rate of polypropylene demand is difficult to match the ultra-high supply growth rate. In the macro context of slowing global economic growth, downstream enterprises are less willing to expand, and end-product consumption is sluggish. Although the state has introduced policies such as reducing and reducing purchase taxes to promote consumption, the main downstream enterprises of polypropylene generally operate steadily and have little confidence in the market. In 2023, the average monthly operating rate of polypropylene main downstream such as plastic knitting, injection molding and BOPP film is 41.65%, 57% and 61.80%, respectively, and the increment of factory orders is limited, which forms a drag on the demand side of polypropylene.
In addition, the recycled plastics market in some regions also has its own performance. Renewable PE market flexible negotiation, the demand is gradually increasing; Regeneration PP part of the market with the rise, high-end material to take goods is still ok; The recycled PVC market is flexible and needs little price fluctuation; The recycled ABS/PS market just needs to be maintained, and downstream manufacturers are more active in purchasing; Recycled PET market enquiries are limited, the corporate mentality is diluted, and the scope of the firm offer is narrow.
It will take time for the recovery of the macroeconomic environment, and the favorable factors in the polypropylene market are relatively few, and it is expected that the price of polypropylene will be difficult to rise and fall in 2024. Relevant enterprises need to pay close attention to market dynamics and actively respond to challenges in order to seek better development.
Post time: Jul-23-2024