Industry news
Analysis of development status of recycled plastics industry
Release time：2018-10-30 9:54:00
Author：admin
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2018-10-26 source: cn2401 renewable resources network
With the arrival of the peak season, the market of recycled plastics is experiencing upward shocks. Take recycled PP as an example, it began to rise all the way from the end of May to 8300 yuan (ton price, the same below) in mid October, with an increase of 12.16%, and the price has reached a high level in the past three years. Two reasons have contributed to the rapid growth of the recycled plastics market. What are the positive and negative factors for the development of the recycled plastics market?
First, the environmental protection policy is favorable
For the recycling plastics industry, the national policy directly affects the market. Since the industry strengthened environmental protection supervision in 2011, national and local supervision has been carried out continuously, and the high-pressure environmental protection policy has been normalized. Affected by this, since 2016, more and more enterprises have withdrawn from market competition, and the operating rate of the industry has remained low. Due to the transformation of environmental protection, the disorderly development and overcapacity of the recycled plastics industry have been improved, and the market supply has been reduced.
Second, the "ban on waste" has led to a decrease in imports
In July 2017, after the implementation plan for banning foreign garbage from entering China and promoting the reform of solid waste import management system was officially issued, a supply gap of 6 million tons of waste plastics was formed in China.
At the same time, the operating rate picked up slightly, which was negligible for the huge domestic demand. Although plastic particles can be imported, the Customs control over particles is also stronger than before.
In addition, the continuous deterioration of the production environment in foreign markets, coupled with the continuous rise of the RMB exchange rate, has reduced the enthusiasm of import traders for ordering, which has also led to the reduction of import volume.
Affected by this, domestic particles have become the main force to fill the vacancy, and the price has soared all the way, giving support to recycled plastics in terms of cost.
Although the price of recycled plastics went up, the profit space of enterprises did not follow up. Taking recycled PP as an example, the profit margin of the enterprise in the recent period is 200-450 yuan, which is only 100-200 yuan higher than that of the same period in previous years. An important reason for this situation is the sharp rise in the price of plastic raw materials.
As an industry with concentrated pollution, the concentration of plastic raw material supply has dropped significantly in the continuous environmental protection supervision. Although some cities in China have issued policies to strengthen the classification of household waste, the utilization rate of waste plastics with high utilization value is already very high. Even if the classification of low-value solid waste is clear, its supply will make limited contribution to the industry. Therefore, the supply of plastic raw materials is reduced, the market price is higher, and the increase is much higher than that of recycled plastics, thus compressing the profit space of manufacturers.
In addition, insufficient demand is an important reason why it is difficult for manufacturers to significantly increase their profits. According to the data of the National Bureau of statistics, the output of plastic products this year is lower than that of previous years, especially after March, the supply of products has not increased significantly.
In July this year, the domestic plastic product volume totaled 5.38 million tons, a decrease of 1.51 million tons over the same period last year, a decrease of 21.97%. Petrochemical inventory is higher than the same period in previous years, which is also a strong proof of insufficient demand this year.
Therefore, recycled plastics enterprises are under the pressure of rising raw material purchase prices and increasing environmental protection production costs, and are hindered by weak domestic demand and blocked cost transmission. It is difficult for the industrial chain to form benign interaction and orderly connection, and they can only passively follow the cost increase. Behind the seemingly beautiful renewable plastics industry is the bleak reality of enterprises' low profit operation.
Therefore, the transformation and upgrading of the industry is imminent. First, adopt green production mode; Second, we should strengthen source recycling and form a network and industrial chain for recycling, processing and utilization of waste plastics; The third is to accurately classify and improve the utilization rate of renewable plastics; Fourth, we should implement anhydrous cleaning to reduce costs.
With the arrival of the peak season, the market of recycled plastics is experiencing upward shocks. Take recycled PP as an example, it began to rise all the way from the end of May to 8300 yuan (ton price, the same below) in mid October, with an increase of 12.16%, and the price has reached a high level in the past three years. Two reasons have contributed to the rapid growth of the recycled plastics market. What are the positive and negative factors for the development of the recycled plastics market?
First, the environmental protection policy is favorable
For the recycling plastics industry, the national policy directly affects the market. Since the industry strengthened environmental protection supervision in 2011, national and local supervision has been carried out continuously, and the high-pressure environmental protection policy has been normalized. Affected by this, since 2016, more and more enterprises have withdrawn from market competition, and the operating rate of the industry has remained low. Due to the transformation of environmental protection, the disorderly development and overcapacity of the recycled plastics industry have been improved, and the market supply has been reduced.
Second, the "ban on waste" has led to a decrease in imports
In July 2017, after the implementation plan for banning foreign garbage from entering China and promoting the reform of solid waste import management system was officially issued, a supply gap of 6 million tons of waste plastics was formed in China.
At the same time, the operating rate picked up slightly, which was negligible for the huge domestic demand. Although plastic particles can be imported, the Customs control over particles is also stronger than before.
In addition, the continuous deterioration of the production environment in foreign markets, coupled with the continuous rise of the RMB exchange rate, has reduced the enthusiasm of import traders for ordering, which has also led to the reduction of import volume.
Affected by this, domestic particles have become the main force to fill the vacancy, and the price has soared all the way, giving support to recycled plastics in terms of cost.
Although the price of recycled plastics went up, the profit space of enterprises did not follow up. Taking recycled PP as an example, the profit margin of the enterprise in the recent period is 200-450 yuan, which is only 100-200 yuan higher than that of the same period in previous years. An important reason for this situation is the sharp rise in the price of plastic raw materials.
As an industry with concentrated pollution, the concentration of plastic raw material supply has dropped significantly in the continuous environmental protection supervision. Although some cities in China have issued policies to strengthen the classification of household waste, the utilization rate of waste plastics with high utilization value is already very high. Even if the classification of low-value solid waste is clear, its supply will make limited contribution to the industry. Therefore, the supply of plastic raw materials is reduced, the market price is higher, and the increase is much higher than that of recycled plastics, thus compressing the profit space of manufacturers.
In addition, insufficient demand is an important reason why it is difficult for manufacturers to significantly increase their profits. According to the data of the National Bureau of statistics, the output of plastic products this year is lower than that of previous years, especially after March, the supply of products has not increased significantly.
In July this year, the domestic plastic product volume totaled 5.38 million tons, a decrease of 1.51 million tons over the same period last year, a decrease of 21.97%. Petrochemical inventory is higher than the same period in previous years, which is also a strong proof of insufficient demand this year.
Therefore, recycled plastics enterprises are under the pressure of rising raw material purchase prices and increasing environmental protection production costs, and are hindered by weak domestic demand and blocked cost transmission. It is difficult for the industrial chain to form benign interaction and orderly connection, and they can only passively follow the cost increase. Behind the seemingly beautiful renewable plastics industry is the bleak reality of enterprises' low profit operation.
Therefore, the transformation and upgrading of the industry is imminent. First, adopt green production mode; Second, we should strengthen source recycling and form a network and industrial chain for recycling, processing and utilization of waste plastics; The third is to accurately classify and improve the utilization rate of renewable plastics; Fourth, we should implement anhydrous cleaning to reduce costs.
