On the first day after the Spring Festival, construction began, and the polypropylene hinge fibers produced by Shandong Jianbang Chemical Fiber Co., Ltd. were sent in bulk to overseas markets - Shandong Jianbang Chemical Fiber Co., Ltd.

On February 4, 2025, just after the Spring Festival holiday, the Polypropylene Hinge Fiber production enterprise of Shandong Jianbang Chemical Fiber Co., Ltd. has been intensively put into production. The first batch of Polypropylene Hinge fiber products have been packed and sent to international markets such as Southeast Asia and South America. As the country with the largest polypropylene production capacity in the world, China is accelerating its layout of a global supply chain with technological upgrades and cost advantages. The "good start" of concentrated shipments after the Spring Festival also indicates a strong start for export business in the new year.

Capacity release boosts exports, Southeast Asia becomes core market

According to customs data, China's polypropylene exports reached 1.31 million tons in 2023, a year-on-year increase of 3.13%, with the Southeast Asian market accounting for over 55%. Leading enterprises represented by Guangdong Mengtai High tech Fiber received orders from Vietnam, Indonesia and other places before the Spring Festival. Their Polypropylene Fibers are widely used in the fields of industrial textiles and medical materials due to their lightweight, corrosion-resistant and other characteristics. The person in charge of Shandong Jianbang Chemical Fiber Co., Ltd. said, "Special trains will be arranged for shipment on the first day after the holiday to ensure timely delivery of orders. The strong demand for infrastructure in Southeast Asia, coupled with tariff and logistics advantages, is the core direction of our exports

Technological upgrading to cope with international competition, high-end products become a breakthrough point

In recent years, the domestic polypropylene industry has gradually broken the homogenization competition of mid to low end products through technological innovation. For example, the Polypropylene Hinge fiber launched by Shandong Jianbang Chemical Fiber Co., Ltd. adopts natural plant extraction technology and has passed European and American environmental certification, becoming a popular product in the African medical market. In addition, with the continuous expansion of domestic production capacity (expected to reach 48.11 million tons by the end of 2024), enterprises are further seizing the high-end market and reducing their dependence on traditional low-priced competition by developing differentiated products such as modified polypropylene and high transparency injection molding.

International logistics collaboration, policy support for trade facilitation

During the peak shipping period after the Spring Festival, ports in South and East China rely on their geographical advantages to open "polypropylene dedicated lines" to improve transportation efficiency. For example, Shandong Yulong Petrochemical has signed a long-term agreement with a South American customer to reduce tariff costs through a free trade agreement. Its 1.9 million ton new production capacity project has been put into operation by the end of 2024, and the first batch of goods will arrive in Brazil this month. At the same time, due to the deepening of economic and trade cooperation between China and Africa, infrastructure projects in Egypt, South Africa and other countries have driven the demand for wire drawing materials in the African market. Domestic enterprises have achieved 15 day direct delivery through the "China Africa Express", which is more than 10 days shorter than traditional sea freight.

Outlook: Diversified exports to resist market fluctuations

Despite the challenges posed by the competition for low-priced resources in the Middle East and the tightening of overseas policies, China's polypropylene exports are gradually transitioning towards high value-added areas through capacity scale and technological innovation. Industry analysts point out that the global demand gap for polypropylene is expected to reach 1.7 million tons by 2025, and the rigid demand from emerging markets such as Southeast Asia and South America will continue to support China's export growth. With the expectation of Fed interest rate cuts heating up, the recovery of overseas manufacturing industry may further open up export space, and the globalization pace of polypropylene "Made in China" is expected to accelerate again.