Delay the resumption of work will have an impact on the plastics industry?

Under the epidemic of the new coronavirus pneumonia, news of the lack of protective equipment for the global epidemic has been constantly heard, and the development of the epidemic affects the nerves of the people of the world.

As insiders, we are also concerned about the increased demand for masks, and how much impact does it have on the polypropylene market? How big is the plastic market?

The impact of the epidemic on the plastics industry has two paths:

First, the decline in demand for crude oil led to a decline in crude oil and a drop in the cost of chemicals;

The second is the negative impact on the plastic terminal demand.

During the anti-epidemic period, national consumption fell sharply, and in the context of the current weak economic cycle, the emergence of the epidemic has worsened the economy. Affected by the epidemic, there is a high probability of delay in the rework of terminal workers after the holiday, which will affect short-term demand.

一，Demand for masks increased significantly 　 increased demand for polypropylene fiber materials

At present, there are many types of masks on the market, such as paper masks, cotton masks, sponge masks and other ordinary masks, as well as surgical masks and protective masks (N95 masks). Medical masks are more resistant to bacteria than ordinary masks. Also Because of this, in this epidemic prevention epidemic, medical surgical masks and protective masks (N95 masks) have become the focus of demand, and the relevant sales platforms and offline outlets are out of stock.

Medical surgical masks are basically made of PP materials; medical protective masks (N95 masks) are composed of mask face and tensioning bands. The face mask is divided into inner, middle and outer layers, the inner layer is ordinary sanitary gauze or non-woven It is a layer of ultrafine polypropylene fiber melt-blown material, and the outer layer is a layer of nonwoven fabric or ultrathin polypropylene melt-blown material. This means that in the case of a large increase in demand for medical masks, the short-term demand for its raw material PP is also significantly increasing.

Decrease in various parties and reduce consumption of plastic products

The supply side belongs to technology-intensive enterprises and is normally produced during the Spring Festival. Most plastic products on the demand side belong to labor-intensive industries.

On the one hand, the epidemic caused workers to delay reunion, leading to lagging demand.

On the other hand, the reduction of various parties during the Spring Festival will reduce the consumption of products, such as disposable tableware, plastic bags, food packaging, etc.