Why is the price of propylene glycol inconsistent with the main raw material prices have been seriously inverted
Propylene glycol is a promising product and its main use is as an intermediate for coatings and reinforced plastics in the production of unsaturated polyester resins. Due to its low toxicity, wettability and excellent dissolution properties, propylene glycol is widely used in food, medicine and cosmetics and is used as a tobacco wetting agent, small animal food, plasticizer for plastics and special plasticizers. Recently developed new uses for liquid detergents. Moreover, with the development of the national economy, the output of unsaturated polyester resin products is only increasing by 10% to 20% annually. This increase in demand for propylene glycol will inevitably grow at the same rate. At present, the apparent consumption of propylene glycol in China is around 100,000 tons per year. The output of domestic enterprises is about 60,000 tons, with a market gap of about 40,000.
Domestic industry analysts believe that the price of propylene glycol deviates from the norm, which is due to the serious dumping of foreign manufacturers. Its characteristics: First, dump sales. Due to the large scale of production of foreign manufacturers and the relative surplus of production capacity, they are naturally increasing their sales volume in the face of China's 40% annual demand deficit. The second is low dumping prices. For example, in the Zhangjiagang port of Jiangsu, the foreign manufacturers' arrival price is only about 11,000 yuan/ton, which is much lower than the selling price of similar products of domestic manufacturers, and far lower than the production cost of propylene glycol itself. From the aspect of production technology, domestic and foreign manufacturers mostly use the transesterification method for their production process, and the main raw materials are all propylene oxide, so the cost of factories at home and abroad is almost the same. Taking the average selling price of propylene oxide of 12,446.16 yuan in the first half of 2005 as an example, the cost of producing propylene glycol plants is at least 14,000 yuan in tax. However, foreign manufacturers have a tax of 11,000 yuan in Hong Kong, and after deducting the related taxes, the port price is only around 9,000 yuan, which is lower than the domestic factory cost of 5,000 yuan.
Propylene glycol and dimethyl carbonate are co-products, that is, the production of 1 ton of dimethyl carbonate produces 0.84 tons of propylene glycol. Its main raw material, propylene oxide, is a petroleum cracking product. With the current high international oil prices, the cost of dimethyl carbonate and propylene glycol will also be maintained at a relatively high price. In recent years, domestic manufacturers have continued to carry out technological innovation through strict management and management, and the processing fee has dropped to the bottom line. In the propylene glycol plant cost, the processing fee per ton is nearly 1,000 yuan, which is less than 7% of the factory cost of 14,000 yuan, and the required raw material propylene oxide is 13,000 yuan per ton, accounting for about 93% of the factory cost of 14,000 yuan. The price of propylene oxide rises as oil prices continue to rise. Therefore, the price of propylene glycol should go up. However, due to the large number of foreign manufacturers dumping in recent years, leading to the simultaneous linkage of domestic propylene glycol prices. As a result, the production and operation of propylene glycol and its related industries are struggling. Finally, dimethyl carbonate and its related industries will also be affected.
If foreign propylene glycol is allowed to be dumped at a low price of 11,000 yuan in the country, it will seriously hinder the development of the domestic propylene glycol industry, and it will also seriously hinder the development of domestic dimethyl carbonate, a good new product. According to sources in the industry of dimethyl carbonate, from 2001 to the present, the annual actual amount of dimethyl carbonate in China is increasing at a rate of 10%, and the actual amount in the future will be much larger than the rate of 10%. The real purpose of low-cost dumping abroad is not to provide our country with inexpensive products. Its ultimate goal is to monopolize our country's market and squeeze domestic propylene glycol and its related industries.
In order to protect the healthy development of the domestic propylene glycol industry, industry-related companies called for the initiative to set up China's propylene glycol industry association as soon as possible, and regularly hold seminars on technological innovation and production and operation in the propylene glycol industry to seek common development and substantially resist operational risks. It actively collects first-hand sources of dumping and damage caused by foreign companies and seeks support from government agencies.
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