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From polypropylene expansion process, after 2019 years refining integration project capacity is expanding at an unprecedented speed, state-owned enterprises, state-owned enterprises and foreign enterprises, are China’s refining industry in the layout on the road to advance wave upon wave, due to the oil refinery project delivery capacity is big, complete industrial chain product, influence to the market faster and more widely, through The new expansion time brings the change of supply pattern to the domestic traditional supply market obvious impact, behind the hot market atmosphere is the market environment of intensifying competition, our polypropylene industry will formally enter the great integration stage.

With the continuous increase of production units, the development of polypropylene industry continues to diversify, industrial layout integration direction, industry discourse power competition is becoming more intense.

From the perspective of raw material selection, the production plant shows strong diversification characteristics, with the proportion of propane and coal increasing. The diversification of raw materials leads to the decentralization of the discourse power of market price pricing, and it is difficult to form a situation where a single raw material dominates the market price of polypropylene. At the same time, the competitive bidding performance brought by the increase of production capacity becomes more and more obvious, and the product pricing changes from the dominant single cost pricing to the low price pricing in various raw material varieties, and the low-end price gradually becomes stronger in the market influence.

Raw material diversity also lead to more frequent market volatility, the upstream raw material fluctuations and downstream industries orders can be upward or downward influence on polypropylene, head, QiTou as raw materials of domestic coal enterprises must be centralized in a regional distribution characteristics of raw material price fluctuations will bring influence on regional and even global market, and the upstream raw material variety, Any kind of raw material fluctuations have a certain degree of impact on the market. Therefore, the impact of price fluctuations is not only its own region, but also presents a diffusion effect on the overall view.

From the perspective of industrial layout integration, the newly built refinery projects support world-class scale refineries and downstream, use refining facilities to increase the production of low-olefin and high-quality chemical raw materials, increase the deep processing and utilization of olefin in oil fields and refineries, truly achieve the end of the oil, enrich the deep processing projects in the chemical industry, and increase the power of discourse.

2022 is still a big year of polypropylene expansion, a number of giants into the polypropylene industry, or increase investment on the basis of the original industry, although under the influence of the double carbon policy growth has slowed down, but it can be predicted that the actual landing is still in cash.

In the second half of the accelerated expansion pace, new capacity is expected to 4.7 million tons, production capacity is expected year-on-year growth or significantly increased, as at the end of the year, total output of polypropylene will exceed 40 million tons, from the point of production node, in the fourth quarter of new capacity dense release, from the production area, production pressure on regional south China, rapid growth of production capacity will trigger a general excess production capacity of polypropylene, Competition among polypropylene companies will become more intense.

Capacity blowout, serious entrainment of polypropylene how to develop?

For future new entrants to improve product competitiveness, new entrants are required to improve services, precise marketing, and differentiated product competition. In 2022, the production areas will be concentrated in East and South China, which will face the “contradiction” between the growing product supply and the slow increase in consumption. Therefore, for enterprises, it is necessary to change from slogans to reality and consider the way to survive.

First, speed up the development of new products, in the face of domestic polypropylene general materials will be surplus situation, the implementation of differentiation strategy, the development of high value-added special materials to replace imports, is the only way to avoid the price competition red sea. Second, optimize the structure of the customer, for suppliers to gradually optimize the customer structure, expand the direct proportion, to keep a stable sales channel and develop customer terminal factory, especially has the representative or industry development direction of industry customers, this not only need supplier with high quality products, also need to according to the characteristics of customer tailored to formulate marketing plan, Supporting corresponding marketing policies. Third, enterprises do a good job in the development of export channels, choose more flowering, reduce mutual game, avoid the intensification of low-price competition. Iv. Always keep a high sensitivity to consumer demand and control. Especially since the epidemic, demand changes have brought more changes to market consumption behavior, so manufacturers and sales teams should always keep a sensitivity to demand changes, follow up the market rhythm and actively develop products.