Metallurgy / Chemicals / Rubber & Plastics

Recently, the polypropylene (PP) products of Shanghai Petrochemical Company completed the REACH registration of the European Chemicals Agency, and obtained the "ID card" to enter the EU market, helping international trade to reach a new height.

According to reports, Shanghai Petrochemical has 3 sets of PP plants, which can produce PP homopolymers, random copolymers, impact copolymers and other products, with a production capacity of 400,000 tons per year.

In the next few years, the PP production capacity will still be in the stage of rapid growth, and the overcapacity will make the domestic PP market competition more intense. In order to further open up the international market, especially the EU market, Shanghai Petrochemical started the REACH registration work on May 27. After more than 70 days of entrusted sample delivery, application materials, registration and other procedures, it finally obtained the official registration document.

Shanghai Petrochemical's performance pre-loss announcement

On July 14, Sinopec Shanghai Petrochemical Co., Ltd. issued a pre-loss announcement for the semi-annual results of 2022: the net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses in the first half of 2022 is expected to be RMB -464 million to -3.24 billion.

The reasons for the loss are: in the first half of 2022, the price of crude oil rose sharply, the market for chemical products continued to slump, the price of finished products did not increase as much as the increase in raw materials, and the company's gross profit decreased.

In the first half of 2022, Shanghai Petrochemical produced 222,300 tons of polypropylene, sold 207,200 tons, and realized sales revenue of about 1.7 billion yuan.

PP exports fell in the first quarter

According to the national customs data, the total export volume of polypropylene in the first quarter of 2022 was 268,700 tons, a decrease of about 10.30% from the fourth quarter of last year and a decrease of about 21.62% from the first quarter of last year.

In the first quarter, the total export value reached 407 million US dollars, and the average export price was about 1514.41 US dollars / ton, a decrease of 49.03 US dollars / ton from the previous month, and the main export price range remained between 1000-1600 US dollars / ton.

In the first quarter of last year, the extreme cold in the United States and the epidemic caused the supply of polypropylene in the United States and Europe to tighten, and there was a demand gap overseas, resulting in relatively large exports.

At the beginning of this year, geopolitical factors combined with tight crude oil supply and demand led to high oil prices and high costs for upstream companies. Domestic polypropylene prices were dragged down by weak domestic fundamentals, and the export window continued to open. The restoration of the high operating rate has caused my country's export volume in the first quarter to decline seriously year-on-year.