Domestic PP plastic production capacity increases rapidly
[Jiuzhi Plastics News] With the rapid increase in the production capacity of domestic PP plastics , as its production capacity growth rate is far greater than its demand growth rate, the contradiction of supply exceeds demand becomes more and more prominent, which directly leads to the decrease of operating rate. In 2016, the overall operating rate of China's PP production enterprises was 81.45%. Among them, there were many new coal chemical plants in the northwest region. Due to the unstable operation of new devices, some plants have longer parking time, which affects their production, resulting in lower operating rates in the northwest. Below the national average, only around 730%.
At present, the region with the most concentrated PP capacity in China is the northwest region. With its rich coal resources, the technology of coal-to-olefins and methanol-to-olefins is becoming more and more mature, and it has become the largest in the country, accounting for 34% of the country's total production capacity. Secondly, propane dehydrogenation technology has enabled East China, South China and other regions to increase the number of manufacturers relying on imported propane to produce propylene, such as Donghua Energy and Zhongjing Petrochemical, relying on the coastal geographical advantages. The production capacity in East China and South China respectively accounts for the whole country. 20%, 18%, ranked second and third.
At present, the region with the most concentrated PP capacity in China is the northwest region. With its rich coal resources, the technology of coal-to-olefins and methanol-to-olefins is becoming more and more mature, and it has become the largest in the country, accounting for 34% of the country's total production capacity. Secondly, propane dehydrogenation technology has enabled East China, South China and other regions to increase the number of manufacturers relying on imported propane to produce propylene, such as Donghua Energy and Zhongjing Petrochemical, relying on the coastal geographical advantages. The production capacity in East China and South China respectively accounts for the whole country. 20%, 18%, ranked second and third.
Southwest China is the region with the highest operating rate of PP plants in China. Only Sichuan Petrochemical Co., Ltd. is a subsidiary of China Petrochemical Corporation. It uses Dow's Unipol gas phase process and is equipped with an oil cracking unit upstream. It is stable in operation. The amount of polypropylene produced is about 480,000 tons, and its operating rate is over 100% compared to the capacity of 450,000 tons/year.
The installations in Central China and Northeast China are mostly old-fashioned Sinopec and PetroChina producers. The plant has been in operation for many years and has an upstream supply of propylene. The operating rates are above 90%. Other regions, especially in East China, are mainly affected by some new installations. Since the new installations will experience a half-year to one-year installation run-in period in the initial stage of production, and the individual enterprises have no matching upstream raw material sources, the high external mining costs will affect the company's own profits. , to maintain low-load operation, so its operating rate is also lower than the national average.
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