Price Increases For Masks Materials Are Stable Due To Freight And Labor Costs.

"Polypropylene did not appear to be in short supply to generate price increases." in January 31st, the responsible person of the largest private petrochemical group in Hengli told reporters that the price of polypropylene used for masks in 2019 was around 8000 yuan / ton, but now it has dropped to 7000 yuan / T, and prices are basically stable.

Recently, reporters have learned that with the development of new crown pneumonia, medical masks are in short supply, and the supply cost of upstream raw materials in the production chain of medical masks is also rising. Among them, the price of non-woven fabrics producing medical masks is rising.

Beijing News reporter survey found that as non-woven raw materials, polypropylene prices stable. A large state-owned petrochemical company staff clearly told the Beijing News reporter that the company's policy is to insist on polypropylene factory price stability.

A number of enterprises and third party agencies said that the main reason for the increase in non-woven prices was freight and labor costs.

"PP did not rise in price, but it did not bring luck. Freight increased. Workers took risks at work during the Spring Festival. They spent hundreds of dollars a day, and labor increased. Our cost went up a lot." in January 31st, the reporter called the sales staff of Heng Tian Jiahua nonwoven Co., Ltd. (hereinafter referred to as "Heng Tian Jia Hua") as a purchaser.

According to industry organization LIAN, although the price of terminal products such as masks has been rising as some traders in the market have been driving up prices, the supply of raw materials is still relatively adequate, or there has been a slight increase in the price of fiber materials after the holiday, but not much.

Polypropylene prices remain unchanged

"One ton of polypropylene can probably supply 200 thousand common masks." in January 31st, Chen Hanhua, director of the CPC Central Committee's work department, told the Beijing News reporters that the supply of polypropylene was not tight at present. On the one hand, the conversion of polypropylene to masks needed less materials, and on the other hand, the production of polypropylene was relatively sufficient, so polypropylene did not appear to be in short supply.

"Polypropylene did not appear to be in short supply to generate price increases." in January 31st, Hengli polypropylene sales officer also told the Beijing News reporters that polypropylene was divided into different production lines according to different categories. Apart from producing polypropylene products suitable for masks, the company will also produce cars suitable for bumpers, automotive interior, woven bags, films and so on. The same applies to polypropylene products.

The person in charge told the Beijing News reporter that the annual output of polypropylene in China is more than 20 million tons, including large central enterprises such as PetroChina, Sinopec, Shenhua, China coal and other private enterprises. Among them, the annual output of Hengli shares is 800 thousand tons, including the kinds of polypropylene. When necessary, for example, when the mask is in short supply, all kinds of polypropylene can be converted into production.

"For example, these machines used to produce polypropylene for automobile bumpers. Now the same machine can be converted to produce polypropylene suitable for masks to ensure supply. At present, we can make nonwoven polypropylene with an annual output of about 600 thousand tons," the person in charge said.

The responsible person said that because of the decline in crude oil costs compared with 2019, the price of polypropylene applied to masks in 2019 was around 8000 yuan / ton, but now it has dropped to 7000 yuan / year. In addition, the price of polypropylene for woven bags is about 7000 yuan / ton, and the price of polypropylene for pipe materials is about 8000-9000 yuan / ton. At present, Hengli shares of polypropylene sales object has long-term contracts, there are also temporary quotations that day, but prices are basically stable.

In terms of price, Chen Hanhua also said that the price of polypropylene will not rise, "Sinopec has made commitments, including polypropylene, including all chemical raw materials do not rise in price".

The price of polypropylene has not increased. Why is it that the price increases?

Freight increase and overtime cost increase nonwoven cost

"Heng Tian Jiahua production line employees have returned to the factory to intensify the production of protective equipment, raw materials and non-woven fabrics. If there is an urgent need for the above epidemic situation to use protective non-woven materials, you can contact at any time. In January 27th, Heng Tian Jiahua released the above news on the official website.

Founded in December 2011, Heng Tian Ka Wah was jointly funded by China Hi-Tech Group Corporation's China Textile Science and Technology Development Co., Ltd. and Xiantao Jiahua plastic products Co., Ltd. the company's existing assets are nearly 1 billion 400 million yuan, and its staff number is over 400. Among them, nearly 100 college staff members are experienced in research and development, production and sales of cloth. Type enterprise. According to introducing, Heng Tian Jiahua has 15 production lines, with an annual capacity of 76 thousand tons.

Heng Tian Jia Hua official website reported that the scope of the new crown pneumonia epidemic was rapidly expanding, and the situation of the epidemic prevention was very strong, especially the supply of raw materials for the epidemic protection products was in short supply. Up to now, the production line of Heng Tian Jiahua plant has been put into operation on a full scale, reaching 120 tons / day. Large scale production of masks has been supplied with non-woven fabrics, melt blown non-woven fabrics and non-woven fabrics on the bottom.

In January 31st, the Beijing News reporter telephoned Heng Tian Jiahua as a purchaser, and the other side said that the production of non-woven fabric (mask cloth) of Heng Tian Jia Hua is 35 tons / day at a price of 14 thousand and 500 yuan / ton, and the output of melt blown fabric is 16 tons / day, the price is 45 thousand yuan / ton.

"Now the mask is going up a lot," said the butt, who is located in Xiantao, Hubei. The polypropylene material of the upstream material of masks is not rising, but polypropylene is not convenient to transport, and the freight price has gone up a lot. In addition, workers are risking their work during the Spring Festival, and each person has to subsidize hundreds of dollars per day, and the cost of labor has also risen a lot.

According to the calculation of Heng Tian Jiahua docking personnel, if shipped from Hubei to Guangxi, according to the calculation of 800 kilometers, the freight per ton of masks will be around 1500 yuan, and the freight charge for ten tons of cloth will be about 15 thousand yuan.

In January 31st, Zhang Ling, an analyst with Jin Lian, told the Beijing News reporters that before the Spring Festival holidays, the major petrochemical manufacturers began to increase production of polypropylene raw materials, such as Dalian organic, Ji'nan refinery, Donghua energy and so on, so the supply side of polypropylene raw materials is relatively abundant. However, with the development of the epidemic, high speed traffic is prohibited, logistics and transportation are not smooth, and later some enterprises postponed the operation.

"Even some enterprises tell us that freight is not the key now. The key is that they have polypropylene, but they simply can't find the cars to be shipped out, and they can't deliver goods across the province," Zhang Ling said.

However, for the specific price range of freight transport, Zhang Ling said, at present, some freight sources containing distribution have increased freight temporarily. There are many second-hand or even three hand sources of goods in the market. This batch is not up to much now. Most middlemen and downstream factories have indicated that they haven't started yet, and they don't know how much freight has increased.

According to LIAN's forecast, after the Spring Festival, the acrylic acid and ester industry is expected to maintain a stable supply and demand situation. Under this mainstream trend, it is expected that the downstream demand for medical grade protection products or the growth rate of orders and orders can be improved.

Jin Lian Chuang said that although the prices of terminal products such as masks had risen as part of the market traders' "bid up prices", the supply of raw materials was still relatively adequate, or there was a slight increase in the price of fiber materials after the holiday, but not much. In addition, some provincial government offices issued a notice on delaying the resumption of enterprises. The downstream enterprises of polypropylene (except for non-woven fabrics and medical products enterprises) were limited in starting up, and the overall demand was reduced, and the market was weakening.

Central enterprises increase production and ensure polypropylene supply

At present, many upstream enterprises have increased the supply of polypropylene, and the performance of central enterprises has been outstanding.

The Beijing News reporter learned from Sinopec that as of January 28th, Zhenhai Refining and chemical plant already had 1800 tons of raw materials which can be used for masks production, waiting for the factory to go out in the warehouse. In February, it produced 8600 tons of polypropylene fiber material. Up to now, Qilu Petrochemical has accumulated 1000 tons of medical grade polyvinyl chloride.

In from January 19th to 31st, Shanghai Petrochemical is expected to produce 6600 tons of polypropylene medical materials, and Maoming Petrochemical expects to put 2500 tons into the market in early February.

In January 28th, Dushanzi Petrochemical Corp urgently released 304 tons of polypropylene S2040 products to ensure the demand for downstream mask manufacturers. Polypropylene S2040 products had been exported 4925 tons since January 1st.

Sinopec said that, in view of the shortage of medical supplies such as medical masks and other measures, Sinopec's refining and chemical enterprises temporarily changed production scheduling and other measures to increase device load and make full efforts to produce medical polyolefins to ensure the supply of raw materials for medical supplies.

The Beijing News reporter learned from China South Korea (Wuhan) Petrochemical Co., Ltd. (hereinafter referred to as China and South Korea petrochemical), China and Korea Petrochemical related departments promptly optimize the production of the company, coordinate the STPP device to overcome the personnel tension during the epidemic situation, and switch the grade to SZ30S in advance. The product is mainly used in the production of non-woven fabrics, and is the basic material for producing medical masks. The company plans to produce the product for about 10 days, about 5700. Tons.

It is reported that in order to prevent and control the epidemic situation, in January 28th, China and South Korea petrochemical ethylene plant emergency adjustment production plan, with 10 days to produce 5700 tons of polypropylene, to provide sufficient medical mask production basic materials for medical enterprises. To this end, China South Korea Petrochemical coordination STPP device, ahead of time switch to SZ30S. The product is mainly used in the production of non-woven fabrics, and is the basic material for producing medical masks.

Yang Wende, general manager of China and South Korea petrochemical, requested that the production line be produced for 24 hours during overcoming difficulties during the outbreak.

China South Korea Petrochemical is controlled by Sinopec. It is located in Wuhan. Currently, there are 4 sets of polyolefin units, and the total output of 4 sets of equipment is 1 million tons / year.