The US trade in quartz stone products has triggered a domino effect, which has aggravated the decline in the production and sales of domestic unsaturated polyester resins. The unsaturated polyester resin industry has ushered in a downward turning point. This is the China Chemical News reporter held in Zibo, Shandong on July 19th. Information obtained by the General Assembly of the China Synthetic Resin Supply and Marketing Association Unsaturated Resin Branch.
According to the meeting, the sales volume of domestic unsaturated polyester resin was 2.97 million tons last year, up 13% year-on-year, reaching the best level in history. From January to May this year, domestic sales of unsaturated polyester resin increased by 20% year-on-year, continuing the growth momentum. Since June, the fundamentals of the industry have changed suddenly: the growth rate of domestic infrastructure investment has declined, and subways in several cities have been suspended, which has brought pressure on the production of unsaturated polyester resins and downstream products. The US Department of Commerce announced on May 14 that it came from China’s quartz stone products were affected by anti-dumping and anti-subsidy investigations, and exports began to shrink.
The United States is the largest exporter of quartz stone in China. Quartz stone belongs to artificial stone, and raw materials such as unsaturated polyester resin are used as raw materials. Last year, the sales volume of unsaturated polyester resin used in the production of quartz stone was 760,000 tons, accounting for the total sales volume. About 25% of the quartz stone was blocked, resulting in a significant decline in the production and sales of domestic unsaturated polyester resin.
According to Qi Jiye, secretary-general of the Unsaturated Resin Branch of China Synthetic Resins Association, the sales volume of unsaturated polyester resin in East China decreased by 60% in the whole month in June, and that in North China and South China decreased by 10% to 15%. The annual production capacity of the industry is 100,000 tons. The device has been discontinued, which has never been seen in history.
He further analyzed that quartz stone and unsaturated polyester resin have been included in the US's new round of 200 billion US dollars in tariffs on imported goods imported from China, which is likely to cause the US industry to stop importing and turn to produce quartz stone. Domestic shipping to the United States is 30 to 35 days. Therefore, the most pessimistic sales of unsaturated polyester resin for quartz in China is expected to drop by 70% to 80% in August, and the most optimistic forecast is to decrease by about 45%. He believes that the decline in the market for unsaturated polyester resins has only just begun. Due to the export of ice, it may affect the raw materials such as styrene, maleic anhydride and phthalic anhydride.
At the same time as the market is not showing up, overcapacity is still intensifying. At present, the annual production capacity of domestic unsaturated polyester resin is 5.3 million tons, and the operating rate is 56%. This year, it will increase production capacity by 900,000 tons, and the production capacity will be 2020. It reached 6.5 million tons.
Yan Jiye stressed that the industry's down cycle will be long, depending on the adjustment of domestic industrial policies in the context of trade wars. If domestic infrastructure investment is increased, the unsaturated polyester resin market remains intact.
Wang Yichao, director of technical production of Xinjiang Yibeisen New Materials Technology Co., said that the impact of the trade war is comprehensive, jeopardizing the entire industrial chain, driving down product prices and causing price fluctuations of key raw materials such as styrene, forcing unsaturated polyesters. The formula is adjusted frequently and the cost will rise.
Zhou Kejun, marketing director of Jiangsu Xinyang Technology Group, pointed out that the United States has suppressed China through trade wars. Although the situation is sinister, it will not bring disaster to the industry. Industry companies can adjust their product mix and switch to other varieties to avoid risks.