Some High-MFR PP Fiber Capacity Withdraws from Production
Most of the high-MFR fiber capacity that emerged during the special period withdrew from the production of high-MFR fiber material.
High-MFR fiber materials are mainly used in the fields of sanitary materials and medical materials. In 2020, due to the special public conditions, the market demand for high-MFR fiber materials grew rapidly. At the same time, the considerable consumption of PP fiber under special circumstances also stimulated domestic petrochemical enterprises to actively enter the field of high-MFR fibers. Therefore, 2020 is the fastest-growing year for new capacity of high-MFR fiber, and capacity once increased from about 5 million mt in 2019 to nearly 28 million mt in 2020, with a growth rate of 450%. The number of high-MFR enterprises accounted for 60% of the total number of PP enterprises. However, the capacity experienced a plunge after 2021. According to data monitoring, the mainstream capacity of high-MFR fiber was only 11-14 million mt/a from 2021 to 2023.
Judging from the change in output in the past five years, it is very similar to the changes in capacity. In 2020, due to the substantial increase in newly built capacity, the actual output of high-MFR fiber increased significantly, reaching 2.4649 million tons during the year, an increase of 140% from 2019. After entering 2021, the output has declined, with a growth rate from -4.6% to 6.82%. On the one hand, some producers that had previously produced high-MFR fiber materials suspended the production of high-MFR fiber materials temporarily. On the other hand, the inventory of finished products was abundant, but downstream and end enterprises were still in the process of destocking and showed softer demand for high-MFR fiber. In conclusion, the output of high-MFR fiber materials will probably be maintained at 1.8-2 million mt/a from 2021 to 2023. There are limited hot spots in high-MFR fiber consumption at present. It is expected that the short-term consumption may not improve noticeably, and the output may still maintain a slow growth rate.
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