By Dou Juan, Polypropylene Fiber Branch of China Chemical Fibers Association

Polypropylene fiber industry in 2022

* Market

Having been increasing in recent years, China’s polypropylene capacity reached 35.81 million t/a in 2022, up 8.98% YoY or 2.95 million t/a YoY (See Table 1, Table 2 and Figure 1 for more details).

Figure 1 China’s polypropylene capacity and output from 2018 to 2022

Most producers chose petroleum or coal to produce polypropylene in 2022, when some firms employed methanol, PDH (propane dehydrogenation) or propane cracking (See Table 3 for more details). As for increment of polypropylene capacity for 2022, 45.76% or 1.35 million t/a came from producers adopting raw material petroleum, and 44.07% equivalent to 1.3 million t/a from those utilizing PDH technology. Further, a 1.8 million t/a MTO unit of Tianjin Bohai Chemical Industry Group Co., Ltd. was put into production in 2022, bringing new polypropylene capacity of 300 000 t/a. There was no new capacity of coal-made polypropylene in 2022.

Polypropylene prices increased first in 2022, but then decreased due to factors like trade conflicts, coronavirus and weak demand. For example, prices of T30S fell to the lowest of RMB7 700/t from the highest of RMB9 580/t, with the annual average reaching RMB8 312.24/t. Polypropylene fiber prices remained relatively stable in 2022: Staple fiber 1.5D was offered at RMB10 000-11 200/t, raw white FDY 900D at RMB11 100-12 400/t and stretch yarn 35D at RMB14 400-15 500/t.

* Production

In 2022, China's chemical fiber production reached 64.88 million tons, a year-on-year decrease of 0.55%. Polypropylene fiber output – mainly from Jiangsu, Hubei, Zhejiang, Shandong, Guangdong, Fujian, etc. – fell 3.5% YoY to 413 000 tons (See Table 4 for more details). Representative producers of filament yarn were Guangdong Modern High-tech Fiber Co., Ltd. and Fujian Sanhong Renewable Resources Technology Co., Ltd., both boasting capacity of more than 30 000 t/a. Representative staple fiber firms were Hubei Botao Synthetic Fiber Co., Ltd. and Taizhou Hailun Chemical Fiber Co., Ltd., both with capacity of over 50 000 t/a.

* Import, export and consumption

Import volume of polypropylene fiber dropped 43.55% YoY to 2 229.31 tons in 2022, and South Korea was the largest source. Export volume was up 3.03% YoY to 78 922.77 tons–90.89% through general trade, 4.13% bonded areas, 3.21% processing trade and 1.77% through other modes. Main export destinations included Bangladesh, Vietnam, Thailand and Indonesia. Apparent consumption of polypropylene fiber reached 336 300 tons in 2022, slightly lower than 355 300 tons in 2021.

* Profits

China’s polypropylene fiber industry developed stably in 2022: Despite of sluggish market, increase in inventories and profit shrinkage of chemical fiber industry, operating revenue of polypropylene fiber industry was up 6.2% YoY to RMB12 billion, and total profit up 10.9% YoY to RMB1 billion –a good outcome mainly attributable to eco-friendliness of polypropylene fiber production, polypropylene fiber’s excellent performance (e.g. high strength, good acid-base resistance property, good electrical insulating property, etc.).

Outlook in 2023

Raw material of polypropylene fiber will be sufficient in 2023, as China’s polypropylene capacity is forecast to exceed 47 million t/a in the year if new polypropylene projects – boasting a combined capacity of 11 million t/a – are put into production as scheduled. Most polypropylene fiber enterprises are small and micro firms, which will face more intense competition, given that leading enterprises will expand capacity to further improve industry concentration in 2023. Polypropylene fiber firms are wise to expand new markets at home and abroad, especially in nonwovens and civil outdoor areas.