30
Rapid growth of polypropylene consumption demand and rapid follow-up of production capacity
2023/9/26
At present, the overall polypropylene market in China is experiencing "dual growth", with rapid growth in demand for polypropylene consumption and rapid follow-up of polypropylene production capacity, with production capacity slightly exceeding consumption. China is currently in the process of adjusting its industrial structure, eliminating outdated production capacity, and transitioning from mass development to high-quality development, which has greatly promoted the changes in the polypropylene industry structure. Many outdated processes and small production capacity polypropylene plants are gradually being phased out, providing national policy oriented support for the development of polypropylene.
According to the national adjustment and layout of the polypropylene industry structure, eliminate small scale, high energy consumption, and weak competitiveness devices. At the same time, transform and expand the existing polypropylene devices, or build large production plants with high productivity to enhance the supply capacity of polypropylene. The research and development of catalysts can drive the rapid development of China's polypropylene industry. Therefore, China should introduce advanced polypropylene catalyst technology from the world, and strengthen the research and development of new catalysts to improve the quality of domestic catalysts. Expanding and renovating the existing loop polypropylene plant to improve the pressure resistance level of production equipment. Develop gas-phase co polymerization fluidized bed technology, develop new resin grade additives, and enhance the production capacity of the device by improving the existing complete set of technologies.
According to the current product structure of polypropylene in China, enterprises should clarify their production ideas, develop towards high-performance, serialization, and specialization, and focus their main productivity on products with high demand and added value, such as high crystallization and rigidity products, high-speed stretching BOPP films, high impact products, and thin-walled injection molding materials, gradually replacing imported products with domestic products.
As catalysts are very important production materials, downstream customers generally choose catalysts very carefully. In the process of catalyst selection, first of all, it is necessary to have a detailed understanding of the industrial use of the product. Based on the actual situation of one's own enterprise, an evaluation report should be made, along with an understanding of the catalyst's use in the market. After discussion and research by relevant departments, the final decision on whether to use the catalyst can be made. After the user tries out the catalyst, they will communicate with the catalyst supply unit in a timely manner to provide feedback on the problems and new needs that arise during the trial. The catalyst supply enterprise further adjusts the catalyst formula and undergoes multiple adjustments until it provides users with satisfactory products. So, users generally do not easily replace a catalyst after using it. In this way, the catalyst supply company and users will establish a long-term and stable cooperative relationship, and both parties will achieve a win-win situation in cooperation.
Modern product marketing aims to meet the different needs of both parties on the basis of fair trade and mutual benefit. In the process of establishing cooperation, users purchase catalyst products for processing and production purposes, with the purpose of making a profit. Marketers who serve the enterprise must explain how their products can help users achieve established profit goals. Catalyst marketing takes "helping users meet their needs" as its responsibility, and timely communicates with users based on changes in processing raw materials, market demand, and process operating conditions, adjusts catalyst formulas to meet their needs. Of course, through timely formula adjustments, although sometimes costs may increase, this behavior has won the trust of users and gradually established a mutually beneficial win-win relationship.
The availability of good service measures and facilities is a very important issue, especially for industrial supplies. In many cases, good after-sales service may be the main factor for successful marketing. Through timely after-sales service, it is possible to promptly understand the usage of the product, identify any shortcomings, and make timely adjustments and improvements to meet the needs of users, thus establishing a long-term contractual relationship. After sales service is an important link in catalyst marketing.
The main raw material of polypropylene is propylene. Polypropylene production enterprises mostly produce propylene themselves, while a small number of enterprises rely on outsourcing. The main sources of propylene come from producers of naphtha cracking to olefins, methanol to olefins, and propane dehydrogenation to propylene. At present, direct sales in the polypropylene industry coexist with the distribution model of traders, with direct sales mainly targeting downstream customers; Trader distribution refers to the cooperation between enterprises and traders. Production enterprises sell polypropylene to traders, who then distribute it to downstream customers. Due to the large number of polypropylene end customers, wide regional distribution, and numerous industries involved, the distribution model of traders is the mainstream sales model in the polypropylene industry.
Enterprises can adopt different density schemes based on the task of making decisions based on the density of terminal sales points, and the current situation and changing trends of their own and market environment.
1. Intensive distribution strategy
In dense distribution, channel members who meet the manufacturer's minimum credit standards can participate in the distribution of their products or services. Intensive distribution means fierce competition among channel members and high product market coverage. Intensive distribution is most suitable for convenience goods. It drives sales growth by maximizing consumer convenience. Adopting this strategy is beneficial for widely occupying the market, facilitating purchases, and selling products in a timely manner. The disadvantage is that the number of distributors who can provide services in dense distribution is always limited. Manufacturers sometimes need to evaluate distributors' training, distribution support systems, transaction communication networks, etc. in order to promptly identify obstacles. In a certain market area, competition among distributors can lead to a waste of sales efforts. Due to intensive distribution intensifying competition among distributors, their loyalty to manufacturers has decreased, price competition has intensified, and distributors are no longer willing to receive customers reasonably.
2. Choose a distribution strategy
Production enterprises choose a portion of intermediaries in specific markets to promote their products. By adopting this strategy, production enterprises do not have to spend too much effort connecting with numerous intermediaries, and it is convenient to establish good cooperative relationships with intermediaries. It can also enable production enterprises to obtain appropriate market coverage. A mechanism for continuously reducing costs through the improvement of distribution efficiency.
The regional pattern of production enterprises in China's polypropylene industry is relatively concentrated, mainly in areas with large-scale coal resources or convenient crude oil imports such as northwest, east, and south China. Polypropylene production capacity accounts for about 70% of the country's polypropylene production capacity.
According to the national adjustment and layout of the polypropylene industry structure, eliminate small scale, high energy consumption, and weak competitiveness devices. At the same time, transform and expand the existing polypropylene devices, or build large production plants with high productivity to enhance the supply capacity of polypropylene. The research and development of catalysts can drive the rapid development of China's polypropylene industry. Therefore, China should introduce advanced polypropylene catalyst technology from the world, and strengthen the research and development of new catalysts to improve the quality of domestic catalysts. Expanding and renovating the existing loop polypropylene plant to improve the pressure resistance level of production equipment. Develop gas-phase co polymerization fluidized bed technology, develop new resin grade additives, and enhance the production capacity of the device by improving the existing complete set of technologies.
According to the current product structure of polypropylene in China, enterprises should clarify their production ideas, develop towards high-performance, serialization, and specialization, and focus their main productivity on products with high demand and added value, such as high crystallization and rigidity products, high-speed stretching BOPP films, high impact products, and thin-walled injection molding materials, gradually replacing imported products with domestic products.
As catalysts are very important production materials, downstream customers generally choose catalysts very carefully. In the process of catalyst selection, first of all, it is necessary to have a detailed understanding of the industrial use of the product. Based on the actual situation of one's own enterprise, an evaluation report should be made, along with an understanding of the catalyst's use in the market. After discussion and research by relevant departments, the final decision on whether to use the catalyst can be made. After the user tries out the catalyst, they will communicate with the catalyst supply unit in a timely manner to provide feedback on the problems and new needs that arise during the trial. The catalyst supply enterprise further adjusts the catalyst formula and undergoes multiple adjustments until it provides users with satisfactory products. So, users generally do not easily replace a catalyst after using it. In this way, the catalyst supply company and users will establish a long-term and stable cooperative relationship, and both parties will achieve a win-win situation in cooperation.
Modern product marketing aims to meet the different needs of both parties on the basis of fair trade and mutual benefit. In the process of establishing cooperation, users purchase catalyst products for processing and production purposes, with the purpose of making a profit. Marketers who serve the enterprise must explain how their products can help users achieve established profit goals. Catalyst marketing takes "helping users meet their needs" as its responsibility, and timely communicates with users based on changes in processing raw materials, market demand, and process operating conditions, adjusts catalyst formulas to meet their needs. Of course, through timely formula adjustments, although sometimes costs may increase, this behavior has won the trust of users and gradually established a mutually beneficial win-win relationship.
The availability of good service measures and facilities is a very important issue, especially for industrial supplies. In many cases, good after-sales service may be the main factor for successful marketing. Through timely after-sales service, it is possible to promptly understand the usage of the product, identify any shortcomings, and make timely adjustments and improvements to meet the needs of users, thus establishing a long-term contractual relationship. After sales service is an important link in catalyst marketing.
The main raw material of polypropylene is propylene. Polypropylene production enterprises mostly produce propylene themselves, while a small number of enterprises rely on outsourcing. The main sources of propylene come from producers of naphtha cracking to olefins, methanol to olefins, and propane dehydrogenation to propylene. At present, direct sales in the polypropylene industry coexist with the distribution model of traders, with direct sales mainly targeting downstream customers; Trader distribution refers to the cooperation between enterprises and traders. Production enterprises sell polypropylene to traders, who then distribute it to downstream customers. Due to the large number of polypropylene end customers, wide regional distribution, and numerous industries involved, the distribution model of traders is the mainstream sales model in the polypropylene industry.
Enterprises can adopt different density schemes based on the task of making decisions based on the density of terminal sales points, and the current situation and changing trends of their own and market environment.
1. Intensive distribution strategy
In dense distribution, channel members who meet the manufacturer's minimum credit standards can participate in the distribution of their products or services. Intensive distribution means fierce competition among channel members and high product market coverage. Intensive distribution is most suitable for convenience goods. It drives sales growth by maximizing consumer convenience. Adopting this strategy is beneficial for widely occupying the market, facilitating purchases, and selling products in a timely manner. The disadvantage is that the number of distributors who can provide services in dense distribution is always limited. Manufacturers sometimes need to evaluate distributors' training, distribution support systems, transaction communication networks, etc. in order to promptly identify obstacles. In a certain market area, competition among distributors can lead to a waste of sales efforts. Due to intensive distribution intensifying competition among distributors, their loyalty to manufacturers has decreased, price competition has intensified, and distributors are no longer willing to receive customers reasonably.
2. Choose a distribution strategy
Production enterprises choose a portion of intermediaries in specific markets to promote their products. By adopting this strategy, production enterprises do not have to spend too much effort connecting with numerous intermediaries, and it is convenient to establish good cooperative relationships with intermediaries. It can also enable production enterprises to obtain appropriate market coverage. A mechanism for continuously reducing costs through the improvement of distribution efficiency.
The regional pattern of production enterprises in China's polypropylene industry is relatively concentrated, mainly in areas with large-scale coal resources or convenient crude oil imports such as northwest, east, and south China. Polypropylene production capacity accounts for about 70% of the country's polypropylene production capacity.
The production enterprises of biaxially oriented polypropylene (BOPP) film in China are mainly concentrated in South and East China, with Zhejiang, Jiangsu, and Guangdong provinces accounting for 70% of the total production capacity in the country. In terms of sales, with the production of new production capacity, the polypropylene market is fully supplied, and the differentiation between low and peak seasons in the downstream polypropylene industry is gradually weakening. The downstream classification is extensive, and there is no significant seasonal difference in demand regions.
JIN DUN CHEMICAL has built a special (meth) acrylic monomer manufacturing base in ZHEJIANG province. This makes sure the stable supply of HEMA, HPMA, HEA, HPA, GMA with high level quality. Our special acrylate monomers are widely used for thermosetting acrylic resins, crosslinkable emulsion polymers, acrylate anaerobic adhesive, two-component acrylate adhesive, solvent acrylate adhesive, emulsion acrylate adhesive, paper finishing agent and painting acrylic resins in adhesive.We have also developed the new and special (meth) acrylic monomers and derivatives. Such as the fluorinated acrylate monomers, It can be widely used in coating leveling agent, paints, inks, photosensitive resins, optical materials, fiber treatment, modifier for plastic or rubber field. We are aiming to be the top supplier in the field of special acrylate monomers, to share our rich experience with better quality products and professional service.
