Behind The Crazy Price Is The Frenzied Market, Polypropylene Or A New Round Of Respirator Draught.

What was the craziest thing in the first half of 2020? Melt blown fabric and oil. A broken sky, a drop through the earth's heart. Those who accompany these two products on roller coaster are not only petrochemical enterprises, non-woven enterprises, mask manufacturers, but also financial institutions, investors and investors. When will the next sharp turn come? Faced with this series of "live long saw" events, even the most experienced big coffee is hard to judge.

In the A share market, the concept of mask was greatly affected by the substantial increase in raw materials. After becoming the draught in February, it returned to the hot market outlet in early April.

In the field of consumption, the domestic market masks supply is basically guaranteed, and the international market gap still exists. There are statistics on cross-border e-commerce platform. Masks and other related products at the beginning of April are trading at tens of times in early March, and have rapidly grown into one of the main platforms.

In the field of production, In the past month, the national mask production capacity has increased by 2 times. BYD, SAIC GM Wuling, Shaanxi Auto and so on. Three gun underwear, red bean, mercury home textiles and so on in textile and garment enterprises. More and more companies are switching to masks. The rapid growth of mask production capacity has brought fire to the market which has always been unheard of melt spray cloth and polypropylene.

This sudden outbreak brought crisis and brought about a turning point. As long as the mask gap exists, the market will be hard to calm down.

Behind the crazy price is the crazy market.

After the domestic epidemic has been well controlled, the resumption of production and rehabilitation has led to the demand for respirators. The fourth national economic census data show that The total number of employed persons in China's legal entities and individual businesses is as high as 533 million. According to a mask per person per day, 533 million masks are required at least a day.

Meanwhile, the continuous escalation of the international epidemic situation has led to a surge in demand for masks. The mask manufacturers of some drug bureaus in Italy have no stock. The price of 100 masks is as high as 100 euros. The German drugstore masks have risen 24 times in 10 days, about 60 euros / boxes. 30 people in Daegu and Gyeongbuk 1 have purchased masks, and Japan has gradually resumed the import of masks from China's market. ? As of the end of March, a total of more than 100 countries and international organizations have introduced materials related to China, including protective clothing, respirators, goggles, thermometers and so on. China's lead in controlling the epidemic has become one of the main suppliers of medical supplies urgently needed in the world.

China is the largest country in the production of masks. In 2019, the total output of respirators in China exceeded 5 billion, accounting for more than 55% of the global production capacity, of which 70% were used for export. Before the outbreak, the average daily output of all kinds of respirators in China was around 22 million, of which the medical surgical mask was 2 million 200 thousand days per day. The production of medical KN95 masks was about 600 thousand days per day, and the rest were large respirators and industrial dust-proof masks. After the outbreak of the epidemic, 56 million masks were imported from abroad and basically bought the global masks. Subsequently, the domestic industry entered the Bureau in succession, more than 3000 enterprises transformation production mask, the domestic rapid increase production capacity, Nissan can already break 100 million. China now produces 80% of the world's masks.

Compared with the current daily capacity, the huge masks have considerable profit margins. According to the regulations, Medical masks contain at least 3 layers of non-woven fabrics. The outer layer and inner layer adopt non-woven fabrics that meet the medical standard. The middle protective layer is melted spray cloth, which is made of polypropylene modified melt blown material. It is the key to filter protection. It is usually called the "heart" of the mask, which has the characteristics of filtration, barrier, heat preservation and adsorption. Surging market demand has led to a shortage of melt blown fabric and jammed the rapid expansion of the mask's neck.

In the production chain of mask, from polypropylene, melt blown material, melt blown fabric to mask, domestic production capacity of upstream chemical raw material polypropylene and melt blown material is at a steady state. ? In 2019, the domestic production of melt blown nonwovens was about 900 thousand tons, of which 650 thousand tons were used for air, water and oil filtration, and 350 thousand tons for masks.

However, in just over two months after the outbreak, the melted spray cloth has been fired from 40 yuan to 16 thousand yuan per ton in the past 40 times. The reason why the price of melt blown fabric is soaring is mainly due to the serious imbalance between supply and demand of the melt spraying cloth, and the superposition of downstream enterprises and individuals for bidding, plus some booster and other factors, resulting in the soaring price of the unit price. Even so, most of the melted cloth manufacturers are not in stock, and the order is scheduled for a few months.

In order to guarantee the stable price of the middle melt melt cloth and the supply of downstream mask products, Sinopec is fully involved in the production of melt blown materials, melted spray cloth and masks in accordance with the SASAC requirements, and opens the whole industrial chain of the mask production. As the largest supplier of medical materials in China, the two expansion of Sinopec has rapidly built 16 production lines, including Yanshan Petrochemical 4 and Yizheng chemical fiber 12. ? It is estimated that by the end of May, after Sinopec's 16 melted spray production lines have been put into operation, and the 5 tons / Nissan of the holding company will be formed, the annual production capacity of 10000 tons of melt blown fabric will be formed.

Demand for blowout, regular supply can not keep up in a short time. As of April 5th, China's disposable medical protective clothing can reach more than 1 million 500 thousand per day, and the medical N95 mask has more than 3 million 400 thousand daily capacity. Li Lingshen, President of China Industrial Textiles Association, said in an interview with CCTV news: "by the end of March and early April, China can produce 200 tons of melted nonwoven materials per day, and can produce 200 million ~2.5 billion masks to achieve a" tight balance ".

Reliable products come from reliable materials.

A large number of masks and melted cloth production lines have also increased the price of high melt polypropylene. It is understood that the price of high melt polypropylene has risen from 9000 yuan per ton to about 40 thousand yuan in two weeks, or even several quotations a day. Not only is the price, but the specific sales channel restricts the entry of many enterprises, and the main production enterprises are point to point sales, that is, the sale of specific downstream production enterprises.

Driven by interests, some small and medium enterprises use non-standard low melt polypropylene polypropylene melt blown cloth, and rush to produce on the basis of lack of understanding of raw materials, equipment and production processes. There are many small workshop production machines are made of other equipment transformation, can not use melt finger 1500 melt spray cloth special raw material. The production of melted spray cloth without the electret treatment and filtration efficiency of only forty or fifty per cent is very different from that of the standard melt blown fabric. These unqualified products flow into the market, which directly affects the quality of mask products.

In order to straighten out the mask market, the Customs issued two heavy punches in 10 days. ? From April 1st onwards, enterprises exporting new coronavirus test reagents, medical masks, medical protective clothing, respirators and infrared thermometers must submit written or electronic declarations to customs declarations. They promise that export products have obtained the registration certificate of medical devices in China and meet the quality standards of importing countries (regions). Since April 10th, the designated epidemic prevention items such as masks must be checked by law.

What is the standard and basis for customs inspection of medical supplies? ? Masks vary in terms of their microbiological parameters, filtration efficiency, respiratory resistance and air tightness. Medical masks and KN95 masks can block bacteria and prevent droplets, because the middle layer of melt blown cloth has higher melting points, and qualified melt blown fabrics have also been treated with electrostatic electret. The melt finger of special material for melt blown fabric is 1500g/10min. The special raw material for melt blown fabric is a very small market, and only a few manufacturers are doing it. With the increase of downstream melt spraying enterprises, the upstream polypropylene production enterprises are also stepping up production.

In April 23rd, Baofeng energy The construction of 7 raw materials production lines for melt blown fabric is expected to be put into operation in late May and 80 tons per day. Baofeng energy will build a special production line for melting and spraying in the factory area of Ningxia, and further extend the industrial chain. The raw material of the production line comes from the self produced high melt index polypropylene fiber product. The company's integrated production layout in the field of coal chemical industry will realize seamless connection from coal raw materials to polypropylene and then to melt blown special materials, effectively ensuring efficient production and stable supply of melt blown special materials.

Liu Yuanguan, President of Baofeng energy It is said that as a leading enterprise in the high-end coal based new materials, the company has built a modern chemical industry cluster integrating coal, coke, gas, methanol, olefin, polyethylene, polypropylene and fine chemicals into an integrated polygeneration. The company always adhered to the fine and fine polyolefin industry, and effectively extended the industrial chain according to market demand and future development. The construction of the special production line of melt blown products will, on the one hand, provide fast and stable supply of key products in urgent need of the market in combination with its own industrial and technological advantages; on the other hand, it will also optimize the product structure of the company and enhance the overall competitiveness of the company.

It's not just Baofeng's energy. Dawn shares, Nanjing Julong and Guo en shares Regular troops also expanded their production. Shanghai SECCO, China Shenhua, China Coal A number of companies have issued a statement on the production and sale of the use of fiber grades, and mentioned that products are used in special fields without warranty or responsibility, calling on customers to correctly use products; "two barrels of oil" issued notice, high melt index fiber temporarily cancels the opening order of intermediate trade, which is directly butted to the end customers by the sales branch, and sets the most. High sale price limit 11500 yuan / ton, not allowed to lead the market...... Facing the "2020 first draught" of masks, the upstream enterprises limited their raw materials, and the customs strengthened the export supervision of masks. Xiantao, the "nonwoven industrial city of China", banned the production of fake and shoddy, three no products, non-woven small companies and small workshops without production quality assurance, and gradually shut down all local masks producers. Yangzhong melted the melted cloth. Manufacturing enterprises... More than two months after the outbreak, the upstream and downstream of China's mask industry chain, which accounts for more than half of the global mask production, has jointly launched a "quality assurance combined boxing" to promote rational market and reliable products to escort the global epidemic.