Polypropylene powder dispute "Intimate comrades" role change

31 May 2018


Source: http://info.21cp.com/industry/News/201805/1421705.htm

      As soon as polypropylene is thought of pellets, polypropylene powder has always played the role of “intimate comrades” around the pellets, and the pellets will also be influenced by the fluctuations of the pellets. At the same time, changes in the price of powder grains can also be found in the law of market changes, whether it is grain-guided powder, or whether the powder fills the vacancy.
      First, the comparison analysis of powder price difference

Polypropylene powder dispute "Intimate comrades" role change
      According to Jinlianchuang's data analysis, the spread of powder and grain is gradually narrowing, and it is currently in a bonded state. The spread is 50-100 yuan/ton from the original and narrowed down to zero. Currently, the granules are favored by the cost and supply side. Impact, the recent strong price intentions, powder is also affected by the short-term decline in space is limited.
     Second, inventory and drawing relevance

Polypropylene powder dispute "Intimate comrades" role change
      According to Jinlian’s creation of inventory data, the current two oil inventories continue to decline, and the ex-factory price of pellet manufacturers is significant. Most of the short-term stability is mostly expected. Although the impact of inventory on the ex-factory price has a slight lag, but the overall negative correlation.
      Third, the spot comparison analysis

Polypropylene powder dispute "Intimate comrades" role change
      From the comparison analysis of the current data of Jinlian Group's creation period, the spot market appears to complement each other, and the spot is subject to high price shocks due to tight supply. Futures are also playing an important role. Futures lead the spot, and spot prices in turn affect futures movements.

      Fourth, the powder particles of the dispute

       There is a certain substitution between polypropylene powder and granules. The comprehensive performance of the granules is better than the powders in the analysis of the advantages and disadvantages of performance. The granules are mostly produced by an integrated device. The source of propylene is stable, the production is continuous, and the melting of the product is stable. , Appearance is good; powder is generally white powder, some products yellow. In addition, the powder does not add any additives during the production process, so its products are inferior to the pellets in terms of sun protection, weather resistance, and the like. From the aspect of product quality, the shelf life of powder is generally 6 months, while the shelf life of pellets is about 2 years, and the stability is higher. Although granules can theoretically replace powders, powders currently occupy a portion of market share by virtue of their low price advantage, and will not change in the short term; in addition, some product production facilities cannot fully use PP pellets, and to a certain extent, Supports the powder market. At present, the price difference between granules and powders is higher than normal, and the low price advantage of powder can still be maintained. However, in the long run, the spread will be gradually restored.

Article link: China Plastic Online http://info.21cp.com/industry/News/201805/1421705.htm