In 2018, the Sino-US trade war continued to escalate, the renminbi depreciated sharply, environmental protection policies continued to be pressured, and so on. The external environment brought many uncertainties to commodities. What is the impact of various events on the plastics market? Below we take a look at the spot market price, import, export and other aspects.
Strengthen the price competitiveness of domestic plastics
The depreciation of the renminbi will increase the procurement cost of imported goods and open up the price difference with domestic sources, which will make downstream users tend to purchase domestic sources.
RMB depreciation bearish import
As we all know, the devaluation of the renminbi is a double-edged sword. While increasing the procurement cost of imported enterprises, it also stimulates the export of downstream products. To a certain extent, the import of plastic raw materials tends to be negative, and the export of plastic products. Play a positive role.
Plastic exports are bright
China is a large plastics production base in the world, and the export volume of plastic products is also quite large. In 2018, China's total exports of plastic products were around 12.95 million tons, an increase of about 10.91% over the same period last year. In 2018, in the harsh environment of Sino-US trade war, the export volume of plastic products still increased significantly, mainly due to the depreciation of the RMB exchange rate, the export of domestic plastic products, and the related policies of “Belt and Road”, which are export orders for plastic products. Turn on the green light.
All in all, the depreciation of the RMB will have a certain degree of impact on the import of China's plastics industry in the short term, which will make the sales of imported materials more difficult. However, in the case of sufficient domestic supply, enterprises should enhance their own competitiveness and seize the opportunity to promote steady growth in exports.
Jiangsu Hongmei Masterbatch Co., Ltd. is an early enterprise engaged in research, development, production, sales and service of plastic masterbatch. The products are mainly composed of three major systems: plastic masterbatch, functional masterbatch and modified materials.
After more than ten years of steady development, Hongmei is currently one of the largest polyolefin masterbatch manufacturers in East China, and its business scale ranks among the top in the domestic industry. Securities abbreviation: Hongmei color mother, stock code: 871968.
