Since the beginning of 2017, environmental protection storms have been engulfing the plastics market, and a large number of plastics enterprises have been ordered to stop production. This has caused difficulties and the cost has continued to rise. This has prompted many small-scale plastics processing companies to smash plastics in the harsh winter and have closed down! In this year 5. The fallen waste plastics company has been difficult to count.
Due to environmental protection, production was stopped, not only a large number of plastics enterprises, but also a large number of downstream processing companies and manufacturing companies. After 'China Plastics First Town' was forced to shut down completely, it was reopened later, but the long-term production was suspended. Caused the surrounding plastic prices to remain high!
The rise in raw material prices has directly led to the increase in the cost of plastics companies. The severe environmental supervision situation has also put pressure on plastics companies. This has directly deepened the gap between large and small plastics companies, which has caused many small businesses to be unable to load, and the closure tide has come ahead of schedule. In Jiangsu and Zhejiang, A number of industry insiders also confirmed that from the north to the south, a large number of small and medium-sized plastics factories are in mass deaths.
A plastics factory with an annual output value of several million has to invest 1.5 million to relocate. In this case, it is still a problem to not do plastics. A veteran in the plastic industry laments.
In areas that do not involve relocation, SMEs need to spend millions of sewage, firefighting and other environmental protection facilities. This is almost a tumultuous reshuffle for small and medium-sized manufacturing companies flying in ultra-low operating space.
It can be seen that environmental protection has become the life and death line of business operations!
Due to strict inspections by the Chinese customs, a large part of the waste plastics gradually shifted to Southeast Asian countries. Malaysia will soon become another waste plastics processing and utilization country after China. It can be said that the surge in the waste plastics industry in Malaysia is due to the impact of China's prohibition on plastics.
The road ahead is difficult.
In 2018, it may be even harder for recycled plastics practitioners. The 19th National Congress’s goal of building beautiful China means that environmental protection will become normal in the coming years. Environmental protection still determines the red line for the development of recycled plastics industry.
The good news is that there will still be import licenses in 2018. The bad news is that only formal companies can obtain the qualifications for approval – with industry upgrading, industries will be forced to co-occur at the same time with small enterprises, and small workshops will be eliminated in large areas. .
Due to the continuous increase in demand, environmental protection, severe crackdown, and import reductions, many factors have been superimposed. 2018 recycled plastics are in short supply, and prices have skyrocketed. Out of stock will become the norm!
Falling import volume led to shortage of goods
In the second half of 2017, the domestic production of recycled particles could not meet the needs of the product companies. Many plastic product companies have emerged in an embarrassing situation with money and goods not available. At the beginning of 2018, most of the processing plants had just resumed production. Traders gradually Into the market, combined with the return of cargo transportation, the demand for recycled plastics will gradually increase.
With the implementation of imported solid waste management policies, the import volume of waste plastics continued to decline. According to the previous demand, the return of raw materials to the remanufactured market declined sharply. The wool material in the domestic market was greatly reduced and the processing plant was not available for processing. The price of recycled materials was comprehensive. Open up mode, a number of manufacturers raised the ex-factory price.
From the first seven batches of imported waste plastics approvals in China, it can be seen that a total of 26 waste plastics processing and utilization enterprises have obtained approvals, and the approved total import volume is 25,281 tons. The state will cancel the import of waste plastics and it will be a trend, so the import volume will continue in the latter period. Reduction will be a necessity.
The “Guomen Lijian 2018” attacked again and determined that the five key areas will be implemented with special strikes and centralized remediation. Among them, combating 'foreign garbage' smuggling has been identified as 'Project No. 1', so the prices of recycled plastics around the country will probably welcome the spring in 2018. bloom.
In 2018, the implementation of China's waste plastics import related policies will continue to increase, and domestic environmental protection will be normalized. It will be difficult to change the tension of the recycled market in the short term, and the price will not be able to come down.
The wave of environmental protection rectification, and the news of the pollution of waste plastics processed here by television stations at the end of last year, hit the industry once again. At present, almost all operators in the waste plastics industry have ceased production.
The price of recycled plastics has remained high, and domestic environmental protection inspectors will not weaken in three years. Recycled materials are not like new materials, and their physical properties change greatly. They are not afraid to place orders without testing machines. Now that they have a low price, the owners of many companies are beginning to go out and find goods, not limited to the local market.
Because of the tightened import of customs and the fatal blow to environmental protection, resulting in a shortage of waste plastics, the supply of goods in the market is in short supply, pushing up the price of plastic waste!