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There are more than 3,000 enterprises engaged in the production of modified plastics in China, but there are only more than 70 enterprises with an annual production capacity of more than 3,000 tons. In the future, with the expansion of market applications, more and more enterprises will increase production capacity. Drive the expansion of the total market.
China's modified plastics application has just started
Compared with the mature development of the modified plastics industry in foreign markets, China's modified plastics industry started late, and the application of large-scale modified plastics has just started. Limited by production technology, the proportion of domestically produced modified plastics in precision manufacturing is lower, far lower than the developed countries and the world average. Considering that China is a big manufacturing country, with the continuous development of the economy and the continuous improvement of modified plastics technology, the demand for modified plastics in the future market will be enormous.
The opportunity for the company lies in doing the best
The expansion of the total market volume may bring about an increase in product homogeneity. When homogenization becomes more and more serious, there are already pre-emptives in other areas to build up barriers. If enterprises want to develop, they must further specialize in their own fields. Doing fine, cars, home appliances is almost a battleground for every modified plastics company.
Raw material producers will benefit
In 2017, China imported 7.05 million tons of waste plastics. In 2018, the annual import volume plummeted to 76,000 tons, down 99% year-on-year. Imported plastics have entered the barrier, and the recycling rate of used plastics in China is also falling. According to the China Renewable Resources Recycling Industry Development Report (2018), the amount of domestic waste plastics recovered in 2017 was 16.93 million tons, a decrease of 1.85 million tons from 2016, a decrease of 9.9%.
The history of long-term import of waste plastics in China will be ended. The country's restrictions on the import of waste plastics are unstoppable, and the shrinking and long-term reconstruction of the recycled plastics industry in the short term has become an inevitable trend. The environmental protection high-pressure, foreign garbage ban, coupled with the pressure brought by the function of large cities, the waste plastics recycling industry is facing industry restructuring.
According to incomplete statistics, 80% of the domestic recycled plastics market faces the embarrassing situation of environmental protection rectification or ban, and 28 cities have provided tens of thousands of “scattering and pollution” enterprises to the Ministry of Environmental Protection.
The price increase of recycled plastic raw materials has become a trend, and out of stock has become the norm. The entire imported waste plastics recycling granulation industry may be the way forward, and the shortage of millions of tons of raw materials needs to find a new direction.
For most domestic import traders, the promulgation of the ban will mean that they must re-plan the procurement channels, regardless of the procurement content or source of procurement, etc. will be a process of re-construction.
Traders who import purely and do not have processing plants themselves have been defined as non-standard. Strictly speaking, imported wool needs to have the production capacity matching its application volume, and the customs and other executive 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 conversion of raw materials from 100% to domestic imports has been completed, and most enterprises are still undergoing transformation. Haitong Securities Research Report pointed out that waste plastics, as an important part of the supply of plastic raw materials in China, banned imports will bring shrinkage of plastic raw materials supply, and domestic plastic raw material manufacturers are expected to benefit.
Lu'an Qingsong Masterbatch Co., Ltd.specializes in the production of non-woven masterbatch, polypropylene masterbatch and other materials, spinning, drawing, BCF and other PP masterbatch, various environmentally friendly masterbatch, functional masterbatch, blowing Film masterbatch, injection masterbatch, engineering plastic modified masterbatch and reinforcing masterbatch. With accurate color matching, fast speed and excellent price, we sincerely cooperate with domestic and foreign merchants to develop together.