A review of important PP industry events in 2021
1, the United States encountered extreme cold weather, domestic export window opened
In February, the United States experienced extremely rare bad weather, resulting in Texas PP device facing a comprehensive shutdown, the US dollar market price rises, domestic PP resource prices become depression, export window in the first quarter obviously opened, China's MARCH PP exports as high as 257,100 tons, a 468.81% increase from the previous month, a 245.10% year-on-year increase.
2. PP units are put into intensive operation, and the supply pressure increases significantly
On March 4, the production capacity of Haguo Dragon Oil was increased by 350,000 tons, on March 23, the production capacity of Dongming Petrochemical was increased by 200,000 tons, on March 29, the production capacity of China-Korea Petrochemical was increased by 300,000 tons, on April 25, the production capacity of Tianjin Petrochemical New line was increased by 200,000 tons, and on May 7, the first-line production capacity of Donghua Energy Ningbo Phase II was increased by 400,000 tons. Domestic PP new capacity concentrated release, field resource supply pressure unprecedented, constantly pressure on the market mentality.
3, household appliance industry output decline, weak demand alarm bells
From March to August, the output of major household appliances in China declined to varying degrees, with a total of 37.415 million household refrigerators, among which the biggest drop was 18.35% in April; Household washing machines totaled 34.368 million tons, with a relatively even decrease from the previous month, generally between 5-8%. The output of household appliances is on the decline, sounding the alarm on the weakening demand, which has a great impact on copolymer resources.
Energy consumption double control policy landing, market prices skyrocket
Into the third quarter, the beginning of the expected and unprecedented "double control of energy consumption" to sleep in THE PP instantly wake up, PP price soared to break the market. However, behind the policy, Shenhua Yulin (300,000 tons); China Coal Yulin (300,000 tons); Yanchang China Coal Yulin co., LTD. (1 million tons) is facing the situation of production reduction and suspension, which makes the profit of coal-to-olefin appear varying degrees of compression. It is reported that the average cost from January to September is 8150 yuan, up 33% year-on-year (6130 yuan). The industry's average profit collapsed from 1250 yuan last year to 300 yuan, down 76%.
5, the implementation of power restriction measures around the market attention
On September 16, the National Development and Reform Commission (NDRC) issued a plan to improve the dual control degree of Energy consumption intensity and total amount. In addition, guangdong, Zhejiang, Jiangsu, Shandong and other provinces have issued power and production restriction policies since late September under the pressure of the assessment of "dual control" at the end of the quarter. Downstream enterprises staggered peak production, orderly use of electricity, "one-size-fits-all" type pull power limit caused market attention.
6, the "combination" launched, coal profit pressure relief
On the evening of October 19, the National Development and Reform Commission (NDRC) made a "combination punch", proposing to strengthen the linkage supervision of the spot market, focus on screening out abnormal trading and malicious speculation, strengthen the penetrating supervision of the futures market, and create a good capital market environment. Affected by this sudden change in the futures market, resulting in a large area of green futures the next day, thermal coal, coking coal, PVC and other main contracts blocked in the limit, PP futures market has not been spared, the main period received around 9200 yuan/ton, the range of nearly 5%.
