Under the global oil price increase and China's ban on waste, the risk of fluctuations in the plastics market has further intensified, and the profit of the plastics industry is rapidly declining. From January to April this year, the profit of the plastics industry fell by 4.69% year-on-year, only 4.91%.
Plastic industry fluctuations increase risk
1, Reduced waste plastics
'This year China’s imports of waste plastics have basically stopped completely. ' Gao Chunyu, an expert at the China Petrochemical Economic and Technological Research Institute, said that statistics show that from January to April this year, China imported only 3,200 tons of vinyl waste plastics. There are more than 100,000 tons in the month. This shows that the import of waste plastics in China has basically been completely stopped. At the end of 2017, China announced that it would stop importing waste materials, and waste plastics accounted for a considerable part.
2, Crude oil rose sharply
At the same time that China's waste plastics basically stopped importing, international crude oil prices have risen sharply. International New York crude oil prices have risen from US$60/barrel at the beginning of the year to US$73/barrel. Domestic companies are suffering from rising costs. Data show that this year. From January to April, the output of the plastics industry increased by 2.32% year-on-year. The main business income increased by 6.69% year-on-year, but the industry profit decreased by 4.69% year-on-year to 4.91%. The whole industry showed a significant downward trend.
3, Rising in the raw materials industry
'One-third of the domestic plastics industry relies on waste plastics as raw materials, while imported wastes account for 1/10. The reduction of waste plastics has driven the rise of the entire raw materials industry. 'Guo Yongxin, deputy secretary-general of the China National Light Industry Council, said similar situations. Occurred in the domestic pulp industry. While prohibiting waste plastics, China also banned the import of waste paper, resulting in the increase in domestic waste paper prices, driving domestic pulp prices to rise, forming a trend of global prices rising together.