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【 Lead 】 Transparent PP compared with some other transparent materials, has the advantages of light weight and low price, good rigidity and strength, moisture resistance, recycling and so on. With the introduction of transparent PP, breaking through the bottleneck of poor transparency of PP products, become a strong competitor of transparent materials. In recent years, with the continuous breakthrough of transparent PP technology, the average annual growth rate of polypropylene transparent material domestic output reached 16.67%, becoming a dark horse in the field of polypropylene consumption growth.

In recent years, the rapid release of the total output capacity of domestic polypropylene, coupled with the influence of “carbon neutrality” and geopolitical factors, has severely compressed the profits of production enterprises. Chinese polypropylene industry is already facing the situation of product homogeneity and increasingly fierce market competition, especially the production difficulty and low added value of polypropylene general materials. Under the influence of this, the supply of transparent polypropylene with relatively high added value can be released quickly, which is one of the faster growing varieties of polypropylene.

According to statistics, from 2017 to 2021, China’s transparent polypropylene capacity and output showed an annual growth trend, with the annual compound growth rate of the capacity at 15.83% and the annual compound growth rate of the output at 16.67%. According to the production data, the growth rate of domestic transparent polypropylene production increased year by year from 2017 to 2020. In particular, due to the impact of public health events in 2020, the market demand for epidemic prevention materials increased greatly, which in turn drove the rapid development of the transparent polypropylene market. Data show: in 2020 domestic transparent polypropylene output growth rate of 23.04%, a record high. In 2021, the growth rate of transparent polypropylene output declined slightly to 22.85%, which is still at a historical high.

In terms of downstream segments, transparent PP has developed rapidly in the world in recent years due to its obvious performance advantages. Transparent polypropylene has a wide range of applications, which can be used to manufacture disposable lunch boxes, milk tea cups, medical syringes, transparent drink cups, infant bottles, infusion bags and other products. The downstream applications involve food, medical treatment, packaging, infants, industrial parts and so on.

According to different processing methods, it is classified as follows:

Injection molding

1. Household products; 2. Tidy the box; 3. Storage cover; 4. Medical devices; 5. Electronic and video cassette; 6. Protective packaging; 7. Cover plate; 8. Equipment components

hollow

1. Seasoning bottle 2. Detergent bottle 3. Water bottle 4. Food and beverage bottle

Extrusion blowing, injection blowing molding

1. Water (beverage) bottle 2 medicine bottle 3. Food and condiment jar 4. Dish soap bottle 5. Baby bottle 6. Room parts 7. Liquid soap and detergent bottles

Sheet metal extrusion

1. Video box set 2. Assembly and lunch box 3. Flooring 4. Sanitary products 5. Cultural and educational office supplies

Hot forming

1. Foam packaging materials 2. Medical trays 3. Disposable deli dishes 4. Microwave instant food containers 5. Drink cup 6. Disposable juice bottle 7. Dairy carton 8. Cookie tray

Thin wall injection molding

1. Dairy case packaging 2. Cooked food containers 3. Disposable beverage cups 4. Storage containers

Casting thin film

1. Photographic cover 2. Sanitary products 3. Candy wrappers 4. Medical film

In the future, although energy consumption dual control policy will continue to affect the supply pattern of polypropylene, but the pace of polypropylene capacity expansion will continue to advance. Lonzhong Information is expected to maintain the growth trend of transparent polypropylene capacity in China in the next five years. During 2022-2026, the compound growth rate of China’s transparent polypropylene production capacity is expected to be as high as 8.45%. With the rapid growth of capacity, the compound growth rate of China’s polypropylene production capacity is expected to be 6.45% during 2022-2026. In terms of operating rate, under the background of “carbon neutrality”, it is expected that the operating rate of Chinese polypropylene production enterprises will inevitably be affected in the next few years. In the fourth quarter of 2021, production enterprises in Northwest Coal processing and developed areas such as East and South China were affected by the continuous dual control and power limiting policies. In 2022, the cost pressure also inhibited the production enthusiasm of polypropylene production enterprises, and the operating rate dropped to the lowest in five years. Therefore, with the increasing competition of polypropylene industry in the future, some production enterprises with weak competitiveness will face greater challenges of survival. For the transparent polypropylene industry, more and more manufacturing enterprises will invest in the transparent polypropylene industry in the future, such as Haitian Petrochemical, Li Hezhixin and other enterprises that use high transparent added value to maintain production profits but do not have a good downstream foundation and market reputation will inevitably face a greater test of survival in the future. Therefore, it is estimated that the operating rate compound growth rate of China’s transparent polypropylene production enterprises in 2022-2026 will be -1.84%.