In 2018, as international chemical giants suffered force majeure, Sino-US trade frictions, domestic environmental protection became stricter, and the import of waste plastics was banned, resulting in a substantial increase in raw material costs. At the same time, the new policy of “restricting plastics” was introduced, and the growth rate of production and sales in the home appliance/automobile industry declined. The influence of factors, the situation of the domestic modified plastics industry is quite difficult. At the same time, industry mergers and acquisitions frequently occur, and international giants' investment in China is also expanding.
Looking at it below, what happened to the 2018 modified plastics industry?
First, the price of PA has soared
In 2018, the price of PA has skyrocketed, mainly affected by upstream raw materials, supply and demand, international crude oil, RMB exchange rate, policies and regulations, etc. The most critical issue is the supply of upstream raw materials.
The main raw materials of PA66 are hexamethylenediamine and adipic acid. Adiponitrile is the raw material for the formation of hexamethylenediamine. The production of hexamethylenediamine is mainly monopolized by some large multinational companies. INVISTA, BASF and ASL are the global production capacity. 74% of them are in a highly oligopolistic industry, resulting in unstable supply and high prices.
At the same time, the price of caprolactam in the upstream of PA6 is affected by the upstream raw materials and the supply and demand side of the market, and the price fluctuates at a high level.
Second, PC waist
Contrary to the strong strength of PA66, PC prices continued to fall in 2018, and the market was volatile.
The reason is mainly due to the continuous expansion of domestic PC production capacity. At the same time, the Sino-US trade war started, the import and export business of downstream products factories was affected, and the price of polycarbons plummeted. Downstream demand did not improve, the demand for terminals such as automobiles was weak, and the contradiction between supply and demand was prominent. The price of upstream bisphenol A continued to fall, which was negative for the PC market.
2018 is a year of expansion of China's polycarbonate, with Wanhua Chemical Phase I 70,000 tons/year, Lihua Yiweiyuan 100,000 tons/year PC plant put into operation, Luxi Chemical's 135,000 tons/year PC device The trial operation began in November and it is expected that official production will be realized next year. At the same time, there are more than a dozen PC projects under construction. If the new devices in the next two years are put into production as scheduled, the domestic PC production capacity will be greatly improved, and PC prices will also be affected.
Third, the deadline for the release of the plastics order issued by the National Development and Reform Commission to formulate a new policy, "green tax"
Since 2008, China has implemented the “plastic limit order” for the 10th year, and the “plastic limit order” has achieved mixed results. In recent years, with the development of new formats such as e-commerce, express delivery, and take-out, the consumption of plastic lunch boxes and plastic packaging has risen rapidly, causing new resource and environmental pressures.
In this regard, the National Development and Reform Commission is studying and formulating policy documents for the prevention and control of plastic waste pollution. According to the principle of “restricting batches, replacing batches, and standardizing batches”, plastic products used in different production, living, consumption, etc. And sub-category propose policy measures.
From January 1, 2018, the environmental protection tax was officially implemented. The “fee-to-tax reform” marks the arrival of a new way of economic growth in China.
Fourth, the import of waste plastics is prohibited
In 2018, the domestic environmental protection situation has become more severe, and the environmental protection and rectification efforts have been continuously increased. The recycling of the recycled plastics industry has caused a certain degree of impact. At the same time, the “prohibition of waste” was further upgraded in 2018. After the ban on the import of waste plastics from the end of 2017, the industrial waste plastics were completely banned on December 31, 2018, cutting off the source of imported renewable materials.
Since 2019, the source of waste plastics in China has been reduced. The standard cost, environmental protection cost and procurement cost of recycled plastic recycling enterprises have been increasing. Coupled with the sharp drop in international oil prices, the price difference between recycled plastics and virgin plastics has further narrowed. The competition in recycled plastics market will further Increase, this will be the industry's survival of the fittest, and then promote industrial transformation and upgrading, the domestic recycled plastics industry will face a re-layout.
V. Sino-US trade war friction
Since March 23, 2018, Sino-US trade friction has continued to escalate. The plastic products involved in the Sino-US tariff increase list include PA (polyamide), PC (polycarbonate), and PVC (polyvinyl chloride). , ABS (acrylonitrile-butadiene-styrene plastic), PE (polyethylene), PP (polypropylene), acrylonitrile, propylene and other chemical products.
Founded in 2003, Jiangsu Plex Red Plum Masterbatch Co., Ltd. is located in Changzhou National High-tech Development Zone. It is an early enterprise engaged in R&D, production, sales and service of plastic masterbatch.
After more than ten years of steady development, Jiangsu Plex Red Plum Masterbatch Co., Ltd. is currently one of the largest polyolefin masterbatch manufacturers in East China, and is the governing unit of China Dyestuff Industry Association. Deputy Director Unit, Director of China Spunbond Nonwovens Association, Member of China Plastics Processing Association Modified Plastics Professional Committee.
Founded in 2003, Jiangsu Hongmei Masterbatch Co., Ltd. is located in Changzhou National High-tech Development Zone. It is an early enterprise engaged in R&D, production, sales and service of plastic masterbatch.
After more than ten years of steady development, Jiangsu Hongmei Masterbatch Co., Ltd. is currently one of the largest polyolefin masterbatch manufacturers in East China, and is the governing unit of China Dyestuff Industry Association. Director unit, director unit of China Spunbond Nonwovens Association, member of China Plastics Processing Association Modified Plastics Professional Committee.
