PP Demand Growth Forecast in Plastic Woven Industry
It is expected that the growth rate of demand for PP in the plastic woven industry will continue to slow down in the future, and there may even be a decrease in demand. Plastic woven products are mainly used in cement bags, fertilizer bags, grain and food packaging, feed packaging, etc. In the next few years, it is estimated that the demand for PP in the cement bag field will grow at a low level and may even experience negative growth. Changes in cement output are determined by downstream demand. In 2024, the demand for cement is likely to remain weak, and the cement output is predicted to decline by 2% Y-O-Y. The cement bagging rate has continued to dip in recent years, and it has dropped to a low level for three consecutive years. Thus, it is expected that the cement bagging rate may rebound slightly in 2024, thereby boosting the demand for plastic woven bags and underpinning the growth of PP demand. However, based on the laws of economic development and the population situation, the scale of the real estate market will gradually shrink. Thus, in the next few years, the demand in the cement industry will pare back year by year. The cement output will ratchet down, curtailing the demand for plastic woven bags. It is expected that the demand for PP may register low growth. Guided by the sales-based production model of chemical fertilizer enterprises represented by compound fertilizers, combined with capacity and its operation rate data in recent years, SCI reckons that the demand for chemical fertilizer in China may be relatively stable in the next five years, hardly driving the demand for plastic woven bags. Besides, the demand in grain, food and feed packaging fields may be limited, so it will be hard to see a notable increment in demand for plastic woven bags.
On the other hand, in the recent five years, the number of new plastic woven enterprises has whittled down year by year, in the wake of industry prosperity cooling. The plastic woven industry faces obvious overcapacity, with weak profitability. Thus, it is envisaged that newly added plastic woven capacity will be limited in the next few years. This industry may even be pressured by eliminating backward capacity. With the gradual weakening of the plastic woven industry, it is estimated that the demand for PP in this industry may grow by around ±2% in the next five years.
All information provided by SCI is for reference only, which shall not be reproduced without permission.
Please click "Read more" for the full article.
