Banned Plastic Order + | Environmental | How Many Companies Will | 'Injured'?

Since the beginning of 2017, the environmental storm has been sweeping through the plastics market. There have been a number of plastic companies ordered to stop production. The project started to become a problem and the cost went up continuously. Many small plastic processing enterprises were unable to survive the harsh winter of plastic. , Fallen plastic waste business has been difficult to count.

Due to environmental protection was ordered to stop production, not only a large number of plastic enterprises, there are many downstream processing and manufacturing enterprises. 'China Plastics First Town' was forced to shut down after all, though later opened again, but the long-term discontinuation Cause the surrounding plastic prices high!

The rising raw material prices directly led to the cost of plastic enterprises to enhance the environmental supervision of the grim situation also let plastic companies under pressure, which directly deepen the gap between small and large plastic enterprises, prompting many small businesses can not afford to close down tide coming.

And Jiangsu and Zhejiang provinces, many industry insiders also confirmed that from north to south, a large number of small and medium plastic factory is mass-produced.

An annual output value of millions of plastic factory, moving factory to invest 1.5 million, in which case, do not do plastic is a problem .A senior plastic industry laments.

In areas that do not involve relocation, SMEs need to spend millions on environmental protection facilities such as sewage disposal and fire fighting. This is almost a curtailed reshuffle for small and medium-sized manufacturing industries flying in ultra-low operational space.

Visible, environmental protection has become a business line of life and death!

Waste plastics are forbidden to import How many businesses will be 'Injured' ?

Because of the strict inspection by the Chinese Customs, a large part of the waste plastics gradually move to Southeast Asian countries. Malaysia is about to become another waste plastics processing and using country after China. The surge of the waste plastics industry in Malaysia is due to the Chinese ban on plastic The impact caused by the order.

Recently, however, Malaysian ports have issued notices that at present only the confirmed scrap resources from the United States can be imported to Malaysia, and the scrap from other sources is not accepted for the time being.

According to statistics, the import of plastic film waste in China and Hong Kong in 2016 is about 10.2 million tons, but this number will plunge by 2018, the total amount will drop 30% ~ 40%. Overseas suppliers will find alternative ways to deal with about 6 Million to 7 million tons of plastic wastes abroad, the value of certain materials dropped sharply abroad, while in China, the price of scrap plastic soared as much as 20-30% due to a shortage.

Recycling industry will be polarized Bacheng enterprises are facing 'Graduation'

China's ban on the import of waste plastics, the domestic waste plastics industry may have the following impact:

Approximately 5% of the factories are converted to centralized local recycling. Generally, large-scale enterprises with systems and technology are competent.

About 5% of the industry out of China to set up factories in Southeast Asia or to Europe, the United States, Japan to 'source regeneration';

The remaining 80% of the enterprises are forced to close down (that is, the business license of the company expires), those who owe no money can be retired gloriously, and those in debt have to go bankrupt.

The most urgent domestic recycling is the waste plastics, household appliances and agricultural waste plastics collected by the municipal government, but the recovery cost of such waste plastics is higher than the post-recovery selling price, and there is no policy to deal with them. With so many factories and production capacity, if we can tie in with government policies, the recovery rate of waste plastics in mainland China will be greatly enhanced.

There will be a bipolarization in this 'banned' recycling industry. After the reshuffle is resumed, the big factories, technology-based, systematic and well-capitalized factories will be left behind. The equipment factory is also one with the same fate, unscaled or unskilled factory Was eliminated.

Difficult road ahead Mixed

The year 2018 may be even harder for recycled plastics practitioners, whose goal of building a beautiful China means that in the next few years, environmental protection will become more and more normalized, and environmental protection will still be the red line that determines the development of the recycled plastics industry.

The good news is that there will still be an import permit in 2018, the bad news is that only formal companies can get the approval - the same goes for industrial upgrading and industry forcing will be small-scale enterprises, small workshops were eliminated .

2016 GoodChinaBrand | ICP: 12011751 | China Exports