[Plastic] China's plastics industry in 2019 review and 2020 outlook

In 2019, in the face of a complex situation where risks and challenges at home and abroad have increased significantly, the plastics processing industry adheres to the new development concept, takes supply-side structural reforms as the main line, and uses technological innovation as the driving force to accelerate structural adjustments, promote sustained and steady growth of the industry, and economic operation Presenting a trend of steady progress.

2019 in review

1.

1.

From January to December 2019, the total output of the national plastic products industry was 81.

2.

In 2019, under the synergy of technological progress, structural optimization, relatively stable raw material prices, the implementation of national fee and tax reduction policies, the replacement of machines to reduce labor costs, and the emergence of large-scale advantages of large enterprises, the total profit of the plastics processing industry has been achieved.

3.

In 2019, the plastics processing industry has achieved remarkable results in eliminating outdated production capacity and accelerating product transformation and upgrading.

4.

The number of enterprises above designated size in the plastics processing industry has grown steadily.

5.

The overall innovation awareness of the industry has increased, and the market demand for high-end products has increased.

2.

In 2019, my country's plastics processing industry overcomes the influence of unfavorable factors such as Sino-US trade frictions, structural surplus of some products, strict environmental protection, and negative public opinion on plastic waste.

1.

From May 10, 2019, the United States imposed tariffs on US$200 billion of imported goods that originally levied a 10% tariff on China to 25%.

2.
Vigorously promote ecological construction and promote green development

At the beginning of 2019, the General Office of the Hainan Provincial Party Committee and the General Office of the Provincial Government jointly issued a document announcing that Hainan Province will completely ban the production, sale and use of disposable non-degradable plastic products for a certain period of time.
At the end of the year, the Sixteenth Meeting of the Standing Committee of the Sixth People's Congress of Hainan Province passed the "Provisions on the Prohibition of Disposable Non-degradable Plastic Products in the Hainan Special Economic Zone.
" Many countries and regions in the world have also proposed banning the use of disposable plastic products such as plastic bags.
The problem of plastic pollution has received unprecedented attention, and there have been frequent riots in the media.
On the basis of calling people to use plastics correctly and scientifically carrying out the recycling and processing of disposable plastic products, the industry has carried out development and utilization of biodegradable materials, reducing the reduction of disposable plastic products, reducing carbon emissions, and promoting the recycling of waste plastics.
A lot of active and effective work.

China Plastics Processing Industry Association undertakes the "Plastic Ecological Construction Sub-forum" of the China Engineering Science and Technology Forum "Polymer Sustainable Development Engineering Science and Technology Forum", organizes the "Plastic Ecological and Green Technology Innovation System Construction" series of activities, and holds the "China-Japan Ocean "Plastic Pollution Response Symposium", through similar related activities, actively lead and promote the prevention and control of waste plastics and the ecological construction of plastics, advocate all sectors of the society to reduce the production of waste plastics from production, application and recycling, and call on the society to correctly understand and promote The media scientifically reported the pollution of waste plastics.

3.
Actively expand new areas of application and create new demands

In 2019, the industry actively expands new application areas, creates new demands and new economic growth points.
Under the background of the downturn in the real estate industry, plastic pipes and other industries are under the promotion and influence of relevant national policies to deploy the "Belt and Road", sponge city construction, smart city underground pipe network and comprehensive pipe gallery construction, clean energy utilization, prefabricated buildings, The treatment of black and smelly water bodies, the construction of rural water conservancy, and the improvement of rural human settlements have gained new market space.
The application market for EPS wall insulation panels is thin, and we actively explore innovative application markets such as integrated panels, floor heating, and sound insulation panels, and have achieved good results.
In 2019, automobile production and sales declined, and the overall consumption of rigid and soft polyurethane foams for vehicles (excluding refrigerated vehicles) declined year-on-year.
However, polyurethane is actively exploring new markets and gaining growth in other application areas.
In the case of insufficient market demand, the artificial leather and synthetic leather industry is still actively expanding new uses, promoting ecological and fashionable synthetic leather and other high-end synthetic leather to gradually become the mainstream of the market.

4.
Actively promote the process of intelligence, reduce costs and improve quality

Plastic processing costs, especially labor costs, continue to increase, and the shortage of skilled workers and difficulties in recruiting workers have become more prominent.
In order to reduce labor costs, improve product quality, and create greater profit margins, the plastics processing industry actively promotes machine substitution, shifting from labor-intensive to technological innovation.
For example, the plastic wiring equipment industry is gradually realizing the automation of production, powder, feeding and other equipment.
The artificial leather and synthetic leather industry consciously adopts and practices intelligent manufacturing and presents new growth.
Plastic household products companies learn from the model of "near unmanned intelligent injection molding workshop".
, Improve the level of intelligent manufacturing.

2020 outlook

1.
Industrial restructuring will continue a good momentum

In 2020, with the further increase of industry concentration, the stronger the stronger the polarization will continue, and the market share and profit growth will further concentrate on advantageous enterprises and new industries.

2.
Product export and capacity output will be coordinated

On January 15, China and the United States signed the first phase of the economic and trade agreement.
The United States cancelled the tariffs that were originally scheduled to take effect in December, and reduced the additional tariffs imposed on US$120 billion on Chinese goods on September 1 to 7.
5%.
Although the signing of the economic and trade agreement prevented the continued escalation of trade friction between the two sides in 2020, the additional 25% tariffs on Chinese goods worth 250 billion US dollars remained unchanged, and the difficulties in exporting to the United States remained.
The plastic products industry should aim at emerging international markets, carry out extensive international cooperation, and diversify development, from product export to capacity output, and promote plastic-related industries to expand market space.

3.
More in-depth implementation of the "Three Products" strategy

With the development of society and economy, downstream requirements for suppliers have become more standardized, forcing enterprises to standardize and standardize production, and promote enterprises to implement the "three products" strategy.
In the future, the industry must adapt to the market orientation of high-end, personalized, small batch, and private customization, promote the rapid growth of new production models and new business formats, and vigorously cultivate new economic growth points.
Industry enterprises have also strengthened collaborative innovation in the industrial chain, researching and developing new materials, and improving product performance.
By improving quality, increasing varieties, creating brands, advocating the spirit of craftsmanship, advocating boutique manufacturing, promoting the transformation and upgrading of the industry, and realizing the transformation from large to strong.

4.
Accelerate the promotion of ecological construction and green and sustainable development of the industry

The 10th meeting of the Central Committee for Comprehensively Deepening Reforms held on September 9, 2019, reviewed and approved the "Opinions on Further Strengthening the Treatment of Plastic Pollution".
The meeting pointed out: Actively respond to plastic pollution, firmly establish new development concepts, and orderly prohibit , Restrict the production, sales and use of some plastic products, actively promote recyclable and easily recyclable degradable alternative products, increase the supply of green products, standardize the recycling of plastic waste, establish and improve management systems for all links, and effectively control plastic pollution in an orderly and effective manner.
Plastic industry personnel actively participate in making a difference.
Looking forward to 2020, the industry's ecological construction and green sustainable development will accelerate.
In the production area, it is necessary to improve industry self-discipline, adhere to green production, reduce the disorderly discarding of plastic particles and finished products from the production, transportation, and sales of plastic products; advocate the scientific and rational use of plastic products, and promote the repeated use of plastic products.
Use and plastic packaging recycling; the recycling and reuse field should actively and scientifically promote the garbage classification system, improve the collection and disposal of plastic waste, strengthen the scientific and systematic management of the recycling and utilization of waste plastics, and form a long-term mechanism.

5.
Policies help reduce the impact of the new crown epidemic on the industry

The new crown pneumonia outbreak in China around the Spring Festival has caused a certain degree of impact on the production and operation of the plastics industry , and the industry needs to actively respond.
At present, it has little impact on companies that produce epidemic prevention-related items, but has a relatively large impact on companies that produce other products, mainly in the impact on the production and resumption of work, the impact on personnel, transportation, raw material supply, and funding.
The impact of the situation, the impact on exports, etc.
In recent days, relevant ministries and commissions and various local governments have successively issued relevant policies involving finance, taxation, human resources, etc.
, to encourage the industry to resume work and production, help solve industry difficulties, and strive to minimize the impact.
The analysis of the impact is phased.
With the improvement of the environment, the pull of policies, and the recovery of the market, 2020 will be a year of steady development and long-term improvement of the industry.

The China Plastics Processing Industry Association will continue to organize the Chinese plastics industry to study and implement the spirit of General Secretary Jinping’s speech and the various arrangements of the Party Central Committee, adhere to the new development concept, deepen the supply-side structural reform, promote scientific and technological innovation, and lead the industry to firmly innovate and develop.
In-depth implementation of the "three products" strategy, vigorously promote intelligent manufacturing, and promote the sustainable development of the plastics industry; organize the 2020 China International Plastics Exhibition and the 4th Plastic New Materials, New Technologies, New Equipment, and New Products Exhibition, China Plastics At the Science and Technology Conference and the 30th Asian Plastics Forum, actively build an exchange service platform to serve the industry's science and technology economic and trade exchanges; in-depth investigation and research, strengthen coordination and reflect the effectiveness of solving corporate difficulties, and improve the level of service industry; strengthen confidence with industry colleagues, work together, and take multiple measures At the same time, we will win the battle against the new crown epidemic and ensure the smooth operation of the economy, promote the high-quality development of China's plastics industry, and contribute to a better life of the people!

(Keywords: Plastic Industry)