TPP Market Witnessed More New Entrants and Output Proportion
Preface: In the past five years, the number of new entry producers of transparent PP (TPP) materials has been increasing constantly, and the output has grown rapidly, with an average growth rate of 13.31% from 2018 to 2022. With the increase of new entrants and the growth of output, the main suppliers of TPP materials are also constantly changing, and especially the proportion of local enterprises continues to increase. By 2022, the output of TPP materials accounted for 4.6% of total PP output, up 0.6 percentage points from 2018.
In recent years, the adjustment of product structure at PP producers has been accelerated, with industry capacity enhanced quickly and downstream consumption upgraded. According to SCI, the number of new entrants that produce thin-wall injection molding, TPP, high-MFR fiber and high-MFR copolymer mounts up continuously, and the output of those categories rose fast from 2018 to 2022. Therein, the average growth rate of TPP output was 13.31%, higher than that of PP output, namely 8.8%.
In recent years, the supply growth of TPP materials has not only benefited from the continuous breakthrough of production technology, but also come from the guidance of demand. The increase in demand for personalized daily necessities, as well as the use of TPP materials on medical syringes, propelled the growth of TPP supply. According to SCI, as of 2022, the capacity of plant lines participating in the production of TPP material reached 9,300kt/a, up 4,100kt/a or 127% from 2018. The number of participating producers reached about 30.
On the back of more new entrants and larger capacity, China’s PP output grew rapidly from 2018 to 2022. As of 2022, TPP output reached 1,383.5kt, up 550kt from 2018.
From the perspective of TPP supply enterprise type, Sinopec is still the largest supplier of TPP, and Sinopec’s TPP output accounted for 42% of the total output in 2022. Sinopec-related producers have entered the TPP field earlier, and their product stability is relatively high. In recent years, most producers have continued to enhance output slightly on the basis of stable supply. In the past five years, Wanhua Chemical, Shandong Dongming Petrochemical, Liaoning Bora Petrochemical and Zhejiang Petroleum & Chemical have successively expanded the TPP field, driving up the proportion of TPP output at local enterprises, which reached 38% in 2022. For PetroChina, TPP suppliers are currently dominated by PetroChina Lanzhou Petrochemical and PetroChina Dushanzi Petrochemical, and their supply has been relatively stable in recent years. In the coal chemical industry, although many enterprises had trial production, limited enterprises realized mass production of TPP, and their TPP output grew narrowly over the past few years.
From the perspective of TPP consumption, it is concentrated in the field of medical supplies and daily household appliances. In the medical field, TPP is used in syringes, centrifuge tubes, petri dishes, medical accessories, etc. In the daily life, TPP is used in microwave tableware, fresh-keeping boxes, tableware, sorting boxes, storage boxes and other fields. It is also widely used in the fields of stationery, sheet, as well as maternal and infant supplies. In recent years, with the increase in small home appliance consumption, the consumption field of TPP is expanding to the transparent part of small home appliances. In the future, with the improvement in personalized and high-quality demand, the market demand for TPP will continue to advance, which may continue to drive the supply growth of TPP materials.
All information provided by SCI is for reference only, which shall not be reproduced without permission.
Please click "Read more" for the full article.
