Review of China's plastics processing industry in 2018 and outlook for 2019
In 2018, the overall operation of my country's plastics processing industry was stable and maintained within a reasonable range. Although the growth rate declined, the trend of steady progress continued to be maintained. In 2019, the fundamentals of healthy and stable economic development in my country have not changed, the factors of production that support high-quality development have not changed, and the overall momentum of long-term stability and improvement in the plastics processing industry has not changed.
2018 in review
1. The overall operation is stable and the growth rate is slowing down
1. The main economic indicators continued to grow. In 2018, the national plastic products industry summary statistics enterprises completed a total output of 60.4215 million tons, an increase of 1.10% year-on-year; 15,571 enterprises above designated size completed a main business income of 1,806.175 billion yuan, a year-on-year increase of 5.04%; realized profits of 95.040 billion yuan, a year-on-year increase of 3.28% ; The profit margin of main business income was 5.26%, a year-on-year decrease of 0.68 percentage points; the growth rate of industrial added value was 3.7%. The main economic indicators basically achieved growth, and continued to maintain the fundamentals of steady progress.
2. Exports are stable and improving. In 2018, under the circumstance of complex and changeable international trade situation and Sino-US trade friction, the cumulative export delivery value of the national plastic products industry still achieved a relatively large year-on-year growth. The cumulative export delivery value for the year was 230.935 billion yuan, a year-on-year increase of 7.21%, and the growth rate was 1.57 percentage points higher than the same period of the previous year, and was higher than the 7.1% growth rate of national goods exports in 2018. At the same time, the export delivery value of each sub-sector of the plastic products industry has achieved year-on-year growth, especially the manufacturing of plastic sheets, pipes and profiles, with a year-on-year growth rate of 22.89%, and the goal of stable and positive import and export is well achieved.
3. The implementation of the "three products" strategy has achieved new results. Adjusting the structure and changing the mode is deeply implemented in the industry and enterprises. According to different customer needs, the company develops new products with multiple functions and high utility, and gradually develops from a single variety, single function, low-end to multi-variety, multi-process, multi-function, multi-purpose, high-end direction, and expands new application fields . The industrial structure was further optimized, and the product quality level was gradually improved. For example, in the polyester film industry, in the case of product homogeneity, enterprises start from product innovation and brand management, expand the application field, and base themselves on the fiercely competitive domestic and foreign markets; the low-end varieties of the profiled door and window industry are gradually eliminated, ASA , film and other varieties that meet the diverse needs of customers are gradually increasing, and the whole is in the stage of product variety adjustment; under the background that the shrinking phenomenon of the foamed plastic EPS industry in the traditional external wall insulation field has not been improved, the lightweight foaming materials such as EPP and EPO have grown. The speed is faster, which broadens the scope of application of the original foam products.
4. Ecological development has attracted attention from all parties and has made substantial progress
In recent years, with the rapid development of disposable plastic products in new formats such as takeaway, express delivery, and e-commerce, plastic products have been widely used in large quantities. While facilitating people's lives and promoting economic development, the problem of post-processing is prominent. On December 30, 2018, the Hainan Provincial Department of Ecology and Environment announced the public solicitation of opinions on the "Implementation Plan for the Comprehensive Prohibition of the Production, Sales and Use of Disposable Non-degradable Plastic Products in Hainan Province (Draft for Comment)". The product market has a very restrictive influence, which will force the development of the recycling industry of waste plastics, and will also promote the market application of biodegradable plastics. The implementation of these policies will trigger new changes and ecological processes in the plastics industry.
In October 2018, the "2018 China International Plastics Exhibition and the 3rd Plastics New Materials, New Technologies, New Equipment, New Products Exhibition" and "2018 China Plastics Processing Industry Science and Technology Conference" and a series of activities hosted by China Plastics Association Held in Nanjing, it was a complete success, and new breakthroughs were achieved in exhibition area, exhibitors, professional audiences and buyers, and the number of participants. This exhibition condenses the resources and strength of the industry, promotes the precise connection between technology and market, promotes the coordinated development of the upstream and downstream of the industrial chain, and makes positive contributions to the healthy development of my country's plastics processing industry and the real economy.
2. The industry has overcome difficulties and forged ahead
In 2018, my country's plastics processing industry is in a new stage of structural adjustment and industrial upgrading. Facing difficulties such as sluggish market demand, high raw material prices, rising labor costs, international trade frictions and changes in external situations, and environmental rectification, colleagues in the industry have overcome difficulties. Difficulty, forge ahead and be brave in innovation.
1. Rising operating costs promote the upgrading of enterprise management
In 2018, although the price of some raw materials returned rationally, such as the overall price of polyurethane basic raw materials MDI and TDI, the overall price dropped significantly throughout the year, and the price of polyether and PO (propylene oxide) was also at a low level, but the prices of most raw materials continued to rise. Rising or running at high levels. According to statistics, from January to September 2018, the price of raw materials in the ex-factory price of industrial producers increased by 7.1% year-on-year on the basis of an increase of 11.5% in 2017, while the ex-factory price of plastic products remained unchanged or increased limited, which was severely crowded. It has suppressed the profit margins of the plastic products industry. In addition, factors such as increased labor costs, increased financial costs, fierce market competition, and sluggish demand have promoted product upgrades and management upgrades.
2. "Prohibition of waste" prompts enterprises to adjust their business strategies
In the past two years, the state has frequently introduced new "waste prohibition" policies such as prohibiting the entry of foreign garbage and promoting the reform of the solid waste import management system. According to statistics, the total amount of imported solid waste in the first half of 2018 was less than 10 million tons, a year-on-year decrease of 56%, and the reduction in waste plastic imports was as high as 99%. The plastic recycling industry has adjusted its business strategies one after another, and enterprises have gradually transformed into domestic waste plastic recycling and processing or set up factories abroad to produce granulation.
3. Environmental rectification boosts the green development of the industry
In 2016 and 2017, the central environmental protection inspector achieved full coverage of 31 provinces (autonomous regions and municipalities), raising environmental protection to an unprecedented strategic level. In 2018, environmental protection policies continued to be introduced and implemented, and environmental protection inspection activities continued to advance, putting forward many new and higher requirements for plastic processing enterprises. Compared with the resistance and unpreparedness in 2017, in 2018, the environmental protection awareness of enterprises has generally increased, focusing on clean production, carefully comparing the national environmental protection requirements, and rectifying those that do not meet the requirements. A series of means are gradually standardized to maintain the healthy and sustainable development of the industry.
4. The international trade situation accelerates the industry to develop emerging markets
On June 15, 2018, the U.S. government released a list of goods subject to a 25% tariff on US$50 billion of Chinese imports. The U.S. government imposed an additional 10% import tariff on $200 billion of goods originating in China from September 24. Among them, the export value of 36 tax-related commodities in the plastic products industry to the United States in 2017 reached 9.088 billion US dollars, accounting for 60.45% of the total exports of plastic products to the United States, which had a greater impact on the exports of the plastic processing industry. In the face of the changing international trade situation, the industry actively explores emerging markets.
Outlook for 2019
The Central Economic Work Conference pointed out that the fundamentals of healthy and stable economic development in my country have not changed, and the conditions of production factors that support high-quality development have not changed. The development status of the plastics industry is completely consistent with this judgment. The overall momentum of long-term stability and improvement has not changed. In the face of the new situation, the plastics processing industry needs to make more efforts in product innovation, technological upgrading, intelligent development, green development, etc., strive to create, and promote the high-quality development of the plastics processing industry.
1. Production and profit growth are expected to be good
In 2018, due to the influence of the ban and abolition order, environmental protection rectification, Sino-US trade friction and other factors, the year-on-year profit growth rate in the first half of the year was only -2.95%. In the second half of the year, the profit rebounded month by month. Profit growth rose to 3.28% year-on-year. In 2019, despite the complex and volatile economic situation, profit growth will continue the growth trend. With the easing of Sino-US trade friction, the expected growth of domestic waste plastic recycling, and the expansion of plastic packaging demand brought about by the rapid development of the e-commerce takeaway industry, the output of plastic products is expected to continue to grow steadily in 2019.
2. High-quality development is valued, and branding will be gradually promoted. With the tightening of environmental protection requirements, the upgrading of industrial structure, and the formulation and improvement of various industry standards, low-end products will gradually withdraw from the market. The industry will stop or reduce low-level repeated investment, find new growth methods and growth points, and promote the improvement of product quality and efficiency. The industry will further enhance the awareness of high-quality products, carry forward the spirit of "craftsman", and deepen the supply-side structural reform by improving quality, increasing varieties, and creating brands, manufacturing high-quality products, cultivating brands, and improving brand competitiveness.
3. Innovation drives the development of the industry. At present, a new round of scientific and technological revolution and industrial transformation is being conceived. The widespread penetration of information technology in the industrial field has led to major changes in development concepts, technology systems, manufacturing models and value chains. Collaboration, intelligence, greenness, and services are gradually becoming the key to manufacturing. The core value is reflected. Industrial Internet, big data, 3D printing, etc. will reconstruct the manufacturing technology system. Product individualization, high-end, small batch, and customized production will be the new trends in the future manufacturing industry. The plastics processing industry will continue to promote the in-depth integration of "two industrializations", vigorously implement "Made in China 2025", promote intelligent manufacturing, introduce digital and intelligent technologies, and realize the intelligent transformation of plastic processing.
Fourth, environmental protection requirements are becoming stricter, and the process of high-end greening is accelerating. The Ministry of Ecology and Environment will organize the assessment and evaluation of the "Three-Year Action Plan for Winning the Blue Sky Defense War"; starting in 2019, my country will spend four years to complete the second round of central ecological and environmental protection inspections and "look back". The requirements of the new environmental protection policy on plastic processing enterprises will become more and more strict. Although it will have an impact on the current industry operation and eliminate some non-compliant enterprises, it will be conducive to the green, healthy and standardized development of the plastics industry in the long run, and will help promote the development of the plastics industry. Sustainable and high-end development. Enterprises will also pay more attention to environmental protection, energy saving and emission reduction in the production and application process, realize clean production and ecological management, strengthen the research and development of new environmentally friendly materials, and reduce the waste rate of products after consumption from the source.
After the country bans the import of solid waste, the development of the domestic plastic recycling industry will be encouraged and supported by the government. Not only will the industrial adjustment, product structure upgrade, processing technology and technology upgrade, but the plastic recycling system will also be gradually improved.
In terms of policy, the adjustment of disposable plastic products will be increased. It is expected that the application specifications for plastic products will be issued in 2019. Degradable plastics will continue to receive strong policy support in the future development. Development and application of degradable plastics.
5. The scale of emerging markets will be expanded. The Central Economic Work Conference emphasized expanding import and export trade, promoting the diversification of export markets, and promoting all-round opening to the outside world. In the past, my country's plastic products exports were more dependent on traditional markets, especially developed markets such as the United States, Europe and Japan. According to customs statistics, in 2017, the total export value of my country's plastic products to the "Belt and Road" countries and ASEAN countries was US$18.789 billion and US$8.202 billion, accounting for 29.95% and 13.01% of the total export value, respectively. The relatively low trade volume also means that these markets have huge room for growth and potential in the future.
In 2019, plastic processing enterprises will continue to actively go out, pay attention to emerging market fields, participate in the construction of the "Belt and Road", explore overseas markets, expand exports, actively carry out international production capacity cooperation by taking advantage of emerging market opportunities, and create conditions to utilize both domestic and international markets. Two kinds of resources, seek common development through consultation, construction, sharing and common development.
Looking back on 2018, all colleagues in the plastics processing industry overcame difficulties and forged ahead, and achieved good results in overall smooth operation and progress while maintaining stability. Looking forward to 2019, in order to achieve steady growth in the plastics processing industry, it is necessary to increase investment in research and development, adhere to innovation-driven, accelerate technological progress, and promote the development of informatization, intelligence and ecology. China Plastics Association will continue to lead the upstream and downstream collaborative innovation of the industrial chain, promote the precise connection between the demand side and the supply side, strengthen the awareness of high-quality products, carry forward the spirit of "craftsman", promote high-quality, high-end, promote green development, clean production, and deepen the supply-side structure Reform and promote the high-quality development of the industry.