Reasons for the price fluctuation of polypropylene (PP) resin
The price of polypropylene resin (PP) began to fall after a crazy price increase. On October 22, the futures spread of polypropylene resin was -353. Why did the price of polypropylene fall?
Everything from it’s source, let's first understand what polypropylene is.
Polypropylene (Polypropylene or polypropene) is abbreviated as PP, which is polymerized from propylene and is the second largest sector of the petrochemical industry. It is a non-toxic, colorless, odorless, odorless, milky white translucent solid granular substance with the molecular formula -[CH2CH(CH3)]n-. The density is generally 0.90~0.91/cm3, which is one of the lightest types of all plastics. j Polypropylene has excellent waterproof performance, the water absorption rate in water is only 0.01%, and the molding performance is excellent, the processed product has good gloss, and can be made into various colors according to needs.
Because of these properties, polypropylene has a very wide range of applications. The currently known application areas include: packaging, pipes and sheets, auto parts, consumer goods, industry, clothing, textiles, and medical applications.
As global energy prices continue to rise, as an important part of the petrochemical industry, the price of polypropylene has risen accordingly. In addition, affected by the global epidemic, many petrochemical plants have difficulty resuming work and production, resulting in capacity vacancies, making polypropylene a seller's market. Polypropylene is also an important raw material for many medical equipment and personal protective equipment. The demand for medical supplies caused by the epidemic has also contributed to the increase in the price of polypropylene.
However, Too much water drowned the miller. The price of polypropylene will inevitably fall after experiencing an increase. The reason is as follows.
Where there is a profit, there is the entry of capital. Although global crude oil prices have been rising, power crises have frequently appeared, it still can't stop the enthusiasm of capital. The productivity restarts and the establishment of new petrochemical plants in Europe and the United States have quickly reached a balance between supply and demand in the market, which made polypropylene quickly return from the seller’s market to the seller’s market.
It is that the epidemics in various countries have been brought under control, and there has not been a new round of major outbreaks. People have a new understanding of the epidemic and anti-epidemic, and there is no panic and confusion at the beginning of the epidemic. The momentum of overconsumption of medical supplies has declined, so that there is no new demand growth to consume capacity too quickly, which has caused the price of polypropylene to fall.
No matter how the price of polypropylene fluctuates, as one of China's important polypropylene export companies, we will still insist on providing customers with high-quality products and quality services. We always keep sufficient stock in our major warehouses and deliver goods at any time. Welcome new and old customers to patronize.
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