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        1. News

          Modified plastics in China may usher in development

          2019-04-10

          There are more than 3000 enterprises engaged in the production of modified plastics in China, but only 70 enterprises with annual capacity of more than 3000 tons. With the expansion of market application, more and more enterprises will be attracted to increase their production capacity, which will lead to the expansion of the total market.


          The application of modified plastics in China is just beginning



          In the economic development of Germany, the proportion of plastics and steel applications is 63:37, 70:30 in the United States and 50:50 in the world. Compared with the mature development of modified plastics industry in foreign markets, China's modified plastics industry started late, and the application of large-scale modified plastics has just started. Due to the limitation of production technology, the proportion of domestic modified plastics used in precision manufacturing industry is lower. At present, the application ratio of plastic steel in China is only 30:70, which is far below the average level of developed countries and the world. Considering that China is a big manufacturing country, with the sustained economic development and the continuous improvement of modified plastics technology, the future market demand for modified plastics will be huge.


          Opportunities for enterprises lie in specialization


          The enlargement of market aggregate may lead to the aggravation of product homogenization. When homogenization becomes more and more serious, the first movers in other fields have built barriers. If enterprises want to develop, they must further specialize in their own fields.


          Automobile and household appliances are almost the indispensable place for every modified plastics enterprise. Compared with other modification enterprises, Nanjing Julong (300644. SZ) in the rail transit position, domestic modification enterprises are almost unrivalled, which is one of the reasons why Nanjing Julong has higher business income in recent years. Guangzhou Golden Hair Technology (600143. SH) and other enterprises with the main industries of modified plastics, fully biodegradable plastics, environmentally friendly high-performance recycled plastics, high-performance carbon fibers and composite materials will also usher in greater development opportunities.


          Raw material manufacturers will benefit from this


          According to Chinese Customs data, China imported 7.05 million tons of waste plastics in 2017, and imported 76,000 tons in 2018, down 99% year on year. Imports of plastics are blocked, and the recovery rate of waste plastics in China is also declining. China's recycling industry development report (2018) shows that in 2017, China's domestic recycling of waste plastics was 16.93 million tons, down 1.85 million tons from 2016, a decline of 9.9%.


          The history of long-term import of waste plastics in China will be ended. The state's restriction on import of waste plastics is irresistible. The shrinkage and long-term reconstruction of recycled plastics industry in the short term will become an inevitable trend. With the high pressure of environmental protection, the ban on foreign garbage, and the pressure brought by the function relief of big cities, the waste plastic recycling industry is facing the restructuring of the industry.


          According to incomplete statistics, 80% of the domestic recycled plastics market is facing an embarrassing situation of environmental rectification or banning. A total of 28 cities provide tens of thousands of "scattered and dirty" enterprises to the Ministry of Environmental Protection.


          Rising prices of recycled plastics materials have become a trend, and shortages have become normal. The whole imported waste plastics recycling and granulation industry may have a slim future, and millions of tons of raw materials need to find a new direction.


          For most domestic import traders, the promulgation of the ban will mean that they have to re-plan the procurement channels, regardless of the procurement content or source, will be a process of re-construction.


          This operation has been defined as non-standard. Strictly speaking, the import of raw materials needs production capacity matching its application volume. Customs and other executing departments are also strictly checking the flow of waste plastics. Therefore, this type of enterprise must be transformed and upgraded. Some enterprises have taken precautions. When the ban was not promulgated, the source of raw materials has been changed from import 100% to domestic production. Most enterprises are still changing. Haitong Securities Research Report pointed out that as an important part of the domestic supply of plastic raw materials, the prohibition of imports will lead to shrinkage of the supply of plastic raw materials, and the domestic production enterprises of plastic raw materials are expected to benefit.

          Copyright All: Technical Support of Wudi Longda Plastic Masterbatch Co., Ltd: Ocean Science and Technology

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