Excessive dependence on imports has restricted the development of China's olefin industry.At present, the production capacity of polyolefin is accelerated, and the production capacity of PP/PE is expected to increase by more than 10% in 2019.However, due to the insufficient supply of high-end polyolefin products in China, they are heavily dependent on imports. Therefore, the development of high-end polyolefin products and import substitution will be the key direction of polyolefin industry upgrading.
Polyolefin (PO) is a polymer of ethylene, propylene or * olefin. It is a polymer material with wide output and application.
Polyethylene (PE) and polypropylene (PP)* are important.
According to relevant data, the polyethylene industry will add 3.6 million tons of production capacity per year this year, with the growth rate of production capacity reaching 11.03%.The polypropylene industry will add 6.6 million tons of production capacity per year, up 15.86 percent.In 2018, the growth rate of new production capacity of polyethylene and polypropylene was 6.77% and 4.68% respectively.It can be seen from the gap between the two that this year's new production capacity will bring a huge impact on the polyolefin market.
From another perspective, China's polyolefin industry is faced with the problem of overcapacity of low-end products and heavy dependence on imports of high-end products.First of all, with the increasing of market demand, more and more enterprises into the polyolefin industries, but by its wide application field and weak general of low technical requirements for the production of advantage, domestic polyolefin production enterprises with more general material production is given priority to, including early operation and the launch of a new device for optimization of the general material, mid-range polyolefin products production capacity rapidly expanding, increasingly fierce competition, the profit space is greatly extrusion, the shortage of domestic high-end products, mid-range appeared the phenomenon of excess production capacity gradually.
At the same time, due to the lack of foundation in China and the relative lag of relevant technical level, the self-sufficiency rate of high-end/high-performance polyolefin in China is less than 40%.High performance materials include metallocene series polyolefin elastomers, high rigidity and high impact copolymer polypropylene, various modified resin materials, etc., these varieties or domestic production is less, or the quality is not fully meet the requirements of users, still mainly imported.These domain, raw material supplies an enterprise to have great breakthrough space.
According to the requirements of the "13th five-year" development plan of new chemical material industry of China petrochemical association, high-end/high-performance polyolefin products have high added value, which is the future development direction of the industry.The market demand for high-end/high-performance polyolefin will grow rapidly with the increasing demand for automobiles, home appliances, real estate and other downstream fields and the expanding application fields of polyolefin products.
It can be seen that in the stock market environment, the future opportunity of China's polyolefin market lies in the demand to seize the high-end market, and the products with more scientific and technological content and added value are the key to the success of production enterprises.