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China's plastics processing industry 2018 review and 2019 outlook

China's plastics processing industry 2018 review and 2019 outlook

Issue Time:2021-07-13

   In 2018, my country's plastics processing industry was generally operating smoothly and maintained within a reasonable range. Although the growth rate has declined, the trend of steady progress will continue to be maintained. In 2019, the fundamentals of healthy and stable economic development in my country have not changed, the conditions of production factors that support high-quality development have not changed, and the overall momentum of the plastics processing industry's long-term stability and improvement has not changed.

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2018 in review


   1. The main economic indicators continue to grow. In 2018, the total output of the national plastic products industry was 60.421 million tons, a year-on-year increase of 1.10%; 15,571 enterprises above designated size completed main business income of 1,806.175 billion yuan, a year-on-year increase of 5.04%; realized a profit of 95.04 billion yuan, an increase of 3.28% ; The profit rate of main business income was 5.26%, a year-on-year decrease of 0.68 percentage points; the growth rate of industrial added value was 3.7%. The main economic indicators have basically achieved growth and continue to maintain the fundamentals of steady progress.

  2. The export is steady and improving. In 2018, despite the complex and volatile international trade situation and Sino-US trade frictions, the cumulative export delivery value of the national plastic products industry still achieved a significant year-on-year growth. The total export delivery value completed throughout the year was 230.935 billion yuan, an increase of 7.21% year-on-year, and the growth rate was 1.57 percentage points higher than the same period last year, and was higher than the 7.1% growth rate of national goods exports in 2018. At the same time, the export delivery value of all sub-sectors of the plastic products industry has achieved year-on-year growth, especially the manufacturing of plastic plates, tubes, and profiles, with a year-on-year growth rate of 22.89%, and the goal of stable and positive imports and exports has been well achieved.

   3. The implementation of the "three products" strategy has achieved new results. Structural adjustments and transformation methods are deeply implemented in industries and enterprises. In response to different customer needs, the company develops new products with multiple functions and high utility, and gradually develops from a single variety, single function, low-end to multi-variety, multi-process, multi-function, multi-purpose, and high-end development, and expands new application areas . The industrial structure is further optimized, and the product quality level is gradually improved. For example, in the polyester film industry, in the case of product homogeneity, companies start with product innovation and brand management, broaden application fields, and base themselves on the fiercely competitive domestic and foreign markets; low-end products in the profiled door and window industry are gradually eliminated, ASA The variety of products that meet the diversified needs of customers, such as film, is gradually increasing, and the overall product variety is in the stage of product variety adjustment; the foam EPS industry has not improved the shrinking phenomenon of the traditional external wall insulation field, and the light foam materials such as EPP and EPO have increased. The speed is faster, which broadens the scope of application of the original foamed products.

  4. Ecological development has received attention from all parties and substantial progress has been made

   In recent years, disposable plastic products have been rapidly developed in new formats such as takeaway, express delivery, and e-commerce, and plastic products have been widely used in large quantities. While facilitating people's lives and promoting economic development, post-processing issues have become prominent. On December 30, 2018, the Hainan Provincial Department of Ecology and Environment issued an announcement on the public solicitation of the "Implementation Plan for the Total Prohibition of the Production, Sale and Use of Disposable Non-degradable Plastic Products in Hainan Province (Draft for Comment)". The product market has a very restrictive effect, forcing the development of the recycling and reuse industry of waste plastics, and will also promote the market application of biodegradable plastics. The implementation of these policies will trigger new changes and ecological processes in the plastics industry.

In October 2018, the "2018 China International Plastics Exhibition and the 3rd Exhibition of New Plastic Materials, New Technologies, New Equipment, and New Products" hosted by the China Plastics Association and the "2018 China Plastics Processing Industry Technology Conference" and a series of activities It was held in Nanjing and was a complete success. The exhibition area, exhibitors, professional visitors and buyers, and the number of participants all achieved new breakthroughs. This exhibition condenses the resources and strength of the industry, promotes the precise docking of technology and the market, promotes the coordinated development of upstream and downstream of the industrial chain, and makes positive contributions to the healthy development of my country's plastics processing industry and the real economy.

   2. Overcome difficulties in the industry and move forward

In 2018, my country's plastics processing industry is in a new stage of structural adjustment and industrial upgrading. It faces difficulties such as weak market demand, high raw material prices, rising labor costs, increased international trade frictions and changes in the external situation, and environmental protection rectification. Difficult, forge ahead and be creative.

   1. Rising operating costs promote the upgrading of corporate management

In 2018, although the prices of some raw materials have returned rationally, such as polyurethane basic raw materials MDI and TDI, the overall prices have dropped significantly throughout the year, and polyether and PO (propylene oxide) are also at a relatively low price level, but the prices of most raw materials have continued Rise or run at a high level. According to statistics, from January to September 2018, the price of raw materials in industrial producer prices rose by 11.5% in 2017, and rose by 7.1% year-on-year, while the ex-factory prices of plastic products remained unchanged or the increase was limited, which was severely crowded. Suppress the profit margin of the plastic products industry. In addition, factors such as increased labor costs, increased financial costs, fierce market competition, and sluggish demand have promoted the upgrading of enterprise products and management.

   2. "Prohibition of waste" prompts enterprises to adjust their business strategies

   In the past two years, the state has frequently issued new policies regarding the prohibition of foreign waste from entering the country and the reform of the solid waste import management system. The requirements have gradually become stricter and more detailed, and the results have been remarkable. According to statistics, the total amount of imported solid waste in the first half of 2018 was less than 10 million tons, down 56% year-on-year, and the reduction in imports of waste plastics reached more than 99%. The plastic recycling industry has adjusted business strategies one after another, and companies have gradually transformed domestic waste plastic recycling and processing or set up factories abroad to produce pellets.

   3. Environmental protection rectification promotes the green development of the industry

   In 2016 and 2017, the Central Environmental Protection Inspectorate achieved full coverage of 31 provinces (autonomous regions and municipalities), which raised environmental protection to an unprecedented strategic height. In 2018, environmental protection policies continued to be promulgated and implemented, and environmental inspection activities continued to advance, putting many new and higher requirements on plastic processing enterprises. Compared with the resistance and unpreparedness in 2017, in 2018, companies have generally increased their environmental awareness, focused on cleaner production, carefully checked the national environmental protection requirements, and rectified non-compliance, through coal to gas, entering the park, and VOCs governance. A series of measures are gradually standardized to maintain the healthy and sustainable development of the industry.

  4. The international trade situation accelerates the industry's development of emerging markets

   On June 15, 2018, the U.S. government released a list of products that impose 25% tariffs on China’s imports of 50 billion U.S. dollars. The U.S. government has imposed an additional 10% import tariff on US$200 billion of goods originating in China on September 24. Among them, 36 tax-related commodities in the plastic products industry reached US$9.088 billion in 2017, accounting for 60.45% of the total exports of plastic products to the United States, and had a greater impact on the exports of the plastics processing industry. In the face of the ever-changing international trade situation, the industry is actively exploring emerging markets.

 

2019 outlook

   The Central Economic Work Conference pointed out that the fundamentals of healthy and stable economic development in my country have not changed, and the conditions of production factors that support high-quality development have not changed. The current development of the plastics industry is in full compliance with this judgment. The overall momentum of long-term stability and improvement remains unchanged. Faced with the new situation, the plastics processing industry needs to make more efforts in product innovation, technological upgrading, intelligent development, and green development, and strive to create and promote the high-quality development of the plastics processing industry.

   1. Production and profit growth are expected to be good

In 2018, due to the ban, environmental protection, and Sino-US trade frictions, the profit growth rate in the first half of the year was only -2.95%, and the profit in the second half of the year rebounded month by month. In December, the year-on-year growth rate reached 25.67%. Profit growth rose to 3.28% year-on-year. Although the economic situation is complex and changeable in 2019, profit growth will continue the growth trend. With the easing of Sino-U.S. trade frictions, domestic waste plastic recycling is expected to grow, and the rapid development of the e-commerce takeaway industry, the demand for plastic packaging is expanding. The output of plastic products is expected to continue to grow steadily in 2019.

   2. High-quality development is valued, and branding will be gradually promoted. With stricter environmental protection requirements, upgrading of the industrial structure, and the formulation and improvement of various industry standards, low-end products will gradually withdraw from the market. The industry will stop or reduce low-level repeated investment, look for new growth methods and growth points, and promote product quality and efficiency improvements. The industry will further enhance the awareness of quality products, promote the spirit of "craftsman", deepen supply-side structural reforms, manufacture high-quality products, cultivate brands, and improve brand competitiveness by improving quality, increasing varieties, and creating brands.

   Three, innovation-driven lead the development of the industry. At present, a new round of technological revolution and industrial transformation is gestating. The extensive penetration of information technology in the industrial field has triggered major changes in development concepts, technological systems, manufacturing models, and value chains. Collaboration, intelligence, green, and services are gradually becoming the manufacturing industry. The core value reflects that the industrial Internet, big data, 3D printing, etc. will reconstruct the manufacturing technology system, and product personalization, high-end, small batch, and customized production will be the new trend of the future manufacturing industry. The plastics processing industry will continue to promote the in-depth integration of the "informatization and industrialization", vigorously implement the "Made in China 2025", promote intelligent manufacturing, introduce digital and intelligent technologies, and realize the intelligent transformation of plastic processing.

   Fourth, environmental protection requirements have become stricter, and the process of high-end greening has accelerated. The Ministry of Ecology and Environment will organize the evaluation and evaluation of the "Three-Year Action Plan for Winning the Blue Sky Defense War"; starting in 2019, my country will take 4 years to complete the second round of central ecological environmental protection inspections and "look back." The new environmental protection policy will have stricter requirements on plastic processing companies. Although it will affect the current industry operations and eliminate some non-compliant companies, in the long run it will be conducive to the green and healthy development of the plastics industry and will help promote the development of the plastics industry. Sustainable and high-end development. Enterprises will also pay more attention to environmental protection, energy conservation and emission reduction in the production and application process, realize cleaner production and ecological management, strengthen the research and development of new environmentally friendly materials, and reduce the waste rate of products after consumption from the source.

   After the country bans the import of solid waste, the development of the domestic plastic recycling industry will be encouraged and supported by the government. Not only will the industry be adjusted, the product structure will be upgraded, the processing technology and technology will be improved, but the plastic recycling system will also be gradually improved.

In terms of policies, adjustments to disposable plastic products will be increased. It is expected that the application specifications for plastic products will be issued in 2019. Biodegradable plastics will continue to receive strong support from policies in the future development, and the industry will increase biological Development and application of degradable plastics.

   5. The scale of emerging markets will be expanded. The Central Economic Work Conference emphasized the expansion of import and export trade, promote the diversification of export markets, and promote all-round opening up. In the past, my country's exports of plastic products relied more on traditional markets, especially developed markets such as the United States, Europe, and Japan. According to customs statistics, in 2017, my country’s exports of plastic products to the “Belt and Road” countries and ASEAN countries totaled US$18.789 billion and US$8.202 billion respectively, accounting for 29.95% and 13.01% of total exports, respectively. The relatively low trade volume also means that these markets have huge room for growth and potential in the future.

In 2019, plastic processing companies will continue to actively go global, focus on emerging markets, participate in the construction of the "One Belt and One Road", open up overseas markets, expand exports, take advantage of emerging markets to actively carry out international capacity cooperation, and create conditions to use both domestic and international markets. Two kinds of resources, seek to discuss, build, share and develop together.

   Looking back on 2018, all colleagues in the plastics processing industry overcame difficulties and moved forward, and achieved good results of overall stable operation and steady progress. Looking forward to 2019, if the plastics processing industry is to achieve steady growth, it must increase investment in research and development, adhere to innovation-driven, accelerate technological progress, and promote the development of informatization, intelligence, and ecology. The China Plastics Association will continue to lead the upstream and downstream collaborative innovation of the industrial chain, promote the precise connection between the demand side and the supply side, strengthen the awareness of quality products, promote the spirit of "craftsman", promote high-quality, high-end, promote green development, clean production, and deepen the supply-side structure Reform and promote the high-quality development of the industry.
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