With the arrival of the peak season, the recycled plastics market fluctuated upwards. Taking recycled PP as an example, it began to rise all the way at the end of May, and rose to 8300 yuan (ton price, the same below) in mid-October, with an increase of 12.16%. The price has reached a high of nearly 3 years. The two reasons have contributed to the surge in the recycled plastics market. So what are the factors that are good for the development of the recycled plastics market?
First, the environmental protection policy is good.
For the recycled plastics industry, national policies directly affect the market. Since the industry increased environmental protection supervision in 2011, the national level and local inspectors have been uninterrupted, and the environmental protection and high-pressure policy has been normalized. Since then, since 2016, the more More and more enterprises have withdrawn from the market competition, and the industry operating rate has remained low. As the environmental protection forced the transformation, the recycled plastics industry developed disorderly, the overcapacity situation improved, and the market supply decreased.
Second, the 'prohibition of waste' led to a decrease in imports.
After the official implementation of the “Implementation Plan for the Reform of the Importation of Solid Waste Import Management System for Foreign Wastes in July 2017”, a domestic supply gap of 6 million tons of waste plastics was formed.
The operating rate of the first time rebounded slightly, which is very small for the huge domestic demand. Although the plastic pellets can be imported, the customs control of the pellets is also stronger than before.
In addition, the production environment in foreign markets is deteriorating, and the exchange rate of the RMB is constantly rising. The enthusiasm of import traders is decreasing, which also leads to a decrease in imports.
Affected by this, domestic pellets have become the main force to fill the vacancy, and the price has risen unsteadily, giving renewable plastic support on the cost side.
Although the price of recycled plastics has risen, the profit-making space of enterprises has not been followed up. Taking recycled PP as an example, the recent profit margin of enterprises is 200~450 yuan, which is only 100~200 yuan higher than the same period of the previous year. The important reason for this situation is The price of plastic wool is rising sharply.
As an industry with concentrated pollution, in the continuous environmental supervision, the concentration of plastic wool supply has dropped sharply. Although some cities in China have introduced policies to strengthen the classification of household waste, the utilization rate of waste plastics with higher value is already high. Even if the low-value solid waste classification is clear, its contribution to the industry is limited. Therefore, the supply of plastic wool is reduced, the market price is higher, and the increase is much higher than that of recycled plastic, thus reducing the profit of the production enterprise. space.
In addition, insufficient demand is an important reason why manufacturers' profits are not greatly improved. The National Bureau of Statistics data shows that the output of plastic products this year is not as good as in previous years, especially after March, the supply of products has not increased significantly.
In July this year, the domestic plastic products volume totaled 5.38 million tons, a decrease of 1.51 million tons compared with the same period of last year, and the reduction rate was as high as 21.97%. Petrochemical inventories were higher than the same period of previous years, which is also a strong proof of insufficient demand this year.
Therefore, in the recycled plastics enterprises, there are pressures on the purchase price of raw materials and the increase in environmental production costs. Under the pressure of domestic weakness and cost transmission, it is difficult for the industrial chain to form a benign interaction, and orderly convergence can only passively follow the rising costs. Behind the seemingly beautiful scenery of the plastics industry, it is the bleak reality of the company's meager profit operation.
Therefore, the transformation and upgrading of the industry is imminent. First, we must adopt the green production mode; second, we must strengthen the source recycling, form the recycling and processing network of waste plastics and the industrial chain; third, we must accurately classify and improve the utilization rate of renewable plastics; Promote waterless cleaning to reduce costs.