With the implementation of environmental protection policies in recent years, on the one hand, the environment has been improved, on the other hand, it has brought no small challenges to the recycled plastics industry.
The recycled plastics market is a policy-oriented industry, and the policy guidance is more obvious. In 2017, the domestic environmental protection efforts have intensified, resulting in the majority of small and medium-sized production enterprises being banned, and the regenerative manufacturers have seen a significant decline, especially in the off-season, encountering environmental protection, 'look back', to the market The operating rate has a great impact, and the market starts in May-July is obviously not ideal.
The most direct impact of the decline in construction is the decline in supply. After the strict environmental protection in July 17th, the supply in the regeneration market fell sharply. Under the influence of or less, the product price continued to be high, and the upward trend continued to the fourth quarter of 17 years. However, from this year's point of view, the price of recycled PE is only around 200 yuan / ton. The normalization of environmental protection makes the production enterprises gradually on the right track, the high stalemate will be the general trend of the future.
It is worth noting that the environmental protection situation in 2018 is still very serious. After the introduction of the 'forbidden waste' last year, there was a huge demand gap in China for a time, and neighboring countries such as Southeast Asia, Japan, South Korea and other countries can still import processing waste. Plastics, so the domestic enterprises engaged in the import of waste plastics quickly opened up the territory. However, most of the Chinese-funded enterprises entering the above countries have the mentality of making quick money, still copying the domestic extensive production mode, and there are few effective measures in environmentally friendly production. The entire imported waste plastics recycling granulation industry faces market challenges.
Life-source waste plastics have been banned at the end of 2017, and industrial sources will be completely banned by the end of 2018. This means that the history of long-term import of waste materials will be ended, and millions of tons of raw material gaps will be needed. Looking for new directions. At the same time, domestic demand for recycled materials is not good, market conditions are weak, and production demand may continue to decrease. For example, PE, PP, PVC, ABS, PS, PET and other recycled plastics raw materials market has been flat recently, large Some recycled plastics manufacturers have to be cautious and have to withdraw from the market.
And with the second round of environmental protection 'look back' once again collided with the off-season demand, the decline in the operating rate of the recycling market is undoubted. After Jinlianchuang understands, since the end of October, the pace of shipments in the market has been obvious. Slowdown, coupled with the gradual cooling of the weather, the enthusiasm of the end customers is obviously insufficient. From September to October, affected by the construction of the construction site, the domestic supply is gradually picking up. After the demand surface is gradually weakening, whether the early inventory can be digested is also a key concern.