Chul Park, February 2020
The expanded polypropylene (EPP) bead foam market is expanding rapidly because of the decreased EPP prices all over the world starting from China. All the polypropylene (PP) resin manufacturers, the EPP bead manufacturers, the steam chest molders, and the final EPP users are changing their business strategies accordingly. Due to the lowered price of EPP and due to the EPP’s outstanding performance in energy absorption, resilience, fracture strength, durability, chemical resistance, thermal insulation properties, acoustic properties, rigidity, and recyclability/sustainability, numerous new applications of EPP have been developed in various industries. Furthermore, many expandable polystyrene (EPS) products, such as sports helmet and packaging materials, have been actively replaced by the EPP products. Compared to the EPS, the EPP’s performance is much better other than the initial stiffness for the same density products. The EPP’s raw material cost is at least 30% lower than that of the EPS, but the EPP bead’s price used to be 3 times as high as the EPS price because of the earlier patent. After the patent expiration in 2015, many EPP bead manufacturing companies have been supplying quality beads in the market and, therefore, the EPP price has become now less than 2 times of the EPS price. It is expected that the EPP price will converge to the EPS price or even go below because of the expanding EPP supply. However, the EPP products’ outstanding performance and the decreasing EPP price will continue to promote the invention and development of new EPP products, and the EPP market will continue to grow for the next decade. Therefore, despite the decreased EPP price, the EPP business and market will be great because of the increased demand of the EPP products. It appears that the increased EPP resin manufacturers will be a temporary solution to the current changes. Because of the large-volume of the EPP beads, unlike the unexpanded low-volume EPS beads, the transportation cost from the EPP resin manufacturer site to the steam-chest molder site is very high. Consequently, most steam chest molders will locate a micro-pelletizer (an extruder) and an EPP bead foam autoclave at an affordable price. The EPP products’ costs will be decreased and thereby the EPP products’ prices will be decreased. Reliable EPP equipment manufacturers are demanded.