Plastic industry challenges increase

At the '2018 China Plastics Industry Conference' held on June 27th, a number of industry experts believed that the plastics industry has experienced slower development since 2018, and various factors in transition are forcing the plastics processing industry to move toward the mid-to-high end, promoting plastics. The industry is developing in a high quality direction.

The relevant person in charge of the Dalian Commodity Exchange (hereinafter referred to as 'Dashang') stated that the challenges and opportunities currently faced with each other, will continue to promote the system optimization of plastics futures varieties, research and launch new varieties, reduce the cost of participating in the market, etc. .

Decline in industry profits Structural contradictions

From January to April 2018, the growth rate of the plastics industry slowed down. The output was 20,445,500 tons, an increase of 2.32% year-on-year; the main business income was 623.519 billion yuan, an increase of 6.69% year-on-year; the profit was 31.004 billion yuan, a year-on-year decrease of 4.69 %; The profit rate of main business income is 4.97%, which is 0.59% lower than the same period of last year. The pressure on industry development has suddenly increased.

According to He Wei, vice president of China National Light Industry Council, as an important export product of China, plastics have frequently encountered international trade friction in recent years, and the entire industry has been greatly affected.

'At present, the main contradiction in China's petrochemical industry is still the contradiction between the oversupply of product structure and the shortage of high-end chemicals. The contradiction between the growing demand for green environmental protection and the backward industrial structure. 'China National Petroleum Corporation (China) and the Chemical Industry Federation Zhao Jungui, vice president and secretary-general, said that with synthetic resin as an example, currently China's synthetic resin products are still dominated by low-end and high-end materials, and the gap in product differentiation is still large. To solve the above problems, Accelerate the transformation and upgrading of the traditional petrochemical industry, increase the level of traditional industries, maintain reasonable growth of reasonable scale, take the path of low price, differentiation, and specialization; on the other hand, we must focus on the stable development of the global plastics market and the entire plastics industry. The further improvement of the chain will accelerate the construction of a plastic market system and a plastic price system with Chinese characteristics and world influence.

Guo Yongxin, deputy secretary-general of the China National Light Industry Council, said that although the industry faces many challenges, the prospects remain bright. Consumption upgrades will bring broad development space for the plastics processing industry. The comparative advantage of China's light industry's international competition still exists. The “All the way” initiative will also bring significant opportunities for light industry such as plastics processing industry.

Plastic futures variety development will continue to optimize

Li Zhengqiang, chairman of the Board of Directors of the University of Science and Technology, said that the petrochemical industry is an important area for the large-scale business to serve the national economy and serve the real economy. Dashang has successively listed linear low-density polyethylene (LLDPE), polyvinyl chloride (PVC), polypropylene. (PP) Three futures varieties. Dashang is also actively adapting to the characteristics of spot varieties and changes in industrial structure, improving the delivery registration brand system, optimizing the layout of delivery warehouses, and promoting the deep integration of futures and spot markets. Currently, the large-scale petrochemical futures varieties The number of delivery warehouses reached 30, and the delivery area extended from the central to the southwest. In 2017, the current price correlation of the three petrochemical varieties remained above 0.9. In 2017, the spot enterprises involved in the trading of petrochemicals in the Dach have had 1118. Home. According to preliminary estimates, more than 40% of the spot trade in plastics is hedged in the futures market. Unit customers have gradually become the dominant force in the market, accounting for 23.5% and 47.6% of transactions.

Chen Wei, director of the Industrial Products Department of Dachshang, said that in order to adapt to the changes in the spot market, Dachshang will continue to promote the optimization of the contract system and further reduce the cost of industrial hedging. First, optimize the PVC futures delivery brand system. At the same time, appropriately expand the scope of the inspection-free brand. Promote the convenience of futures delivery. Second, the delivery brand system will be extended to LLDPE, PP varieties, and the exemption system will be implemented for some mainstream brands recognized by the market. The delivery brand will be recognized by the exchange according to the relevant delivery brand system. The third is the trial trader exemption. The fourth is to plan to increase Beijing and other places as the delivery area. The fifth is to learn from the mature or standardized trader factory system of iron ore futures, promote the construction of traders' factory warehouse in the plastic futures market, and improve the delivery system. , Active in recent months, set up warehouse receipt service providers on plastic futures, encourage customers to participate in near-month contract transactions, improve the efficiency of corporate hedging.

In addition, Dachshang will continue to promote the construction of the OTC market, continuously optimize the upgrade transaction and clearing platform, develop more index products, encourage the promotion of point trade, OTC options and OTC swap business; vigorously develop more new varieties, For example, to promote the listing of ethylene glycol futures, research on styrene, pure benzene and other upstream raw materials and low-density polyethylene, high-density polyethylene and other more finished products, to provide a more complete and rich futures variety system for the plastics industry.

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