The plastics industry's top priority is to control the rate of capacity expansion

In 2011, the production capacity of PVC accounted for 45% of the five major general plastics, followed by PE capacity accounting for 22%, PP capacity slightly less than PE, ABS and PS capacity accounted for 6% and 5%
respectively.

In 2015, the capacity expansion rate of PVC slowed down, while the capacity expansion rate of PP was faster, the proportion of PVC capacity fell to 36%, the production capacity of PP accounted for 28%, the capacity of PE increased to 24%, the expansion rate of ABS and PS capacity was relatively slow, and the proportion of ABS and PS capacity was 6%.

Based on the domestic production and import volume, the self-sufficiency rate
of the five major general-purpose plastics is calculated.
From 2011 to 2015, the self-sufficiency rate of the five major general plastics has increased, the self-sufficiency rate of PVC has increased by 8% to 99%, the self-sufficiency rate of PP has increased by 11% to 78%, the self-sufficiency rate of ABS has increased by 10% to 62%, the self-sufficiency rate of PS has increased by 7% to 73%, and the self-sufficiency rate of PE has increased by 1% to 58%.

The high self-sufficiency rate of PVC and PP is mainly attributed to the large
production capacity of PVC and PP.
PE self-sufficiency rate is not as good as PVC and PP, mainly limited by the domestic supply structure, more dependent on some imported products, mainly divided into price dependence and product type dependence, price dependence is mainly low-end products with price advantages in the Middle East, product type dependence is mainly South Korea, Japan and other high-end quality products, domestic supply gap products
.
Domestic consumption of ABS and PS is limited, and with the expansion of domestic production capacity, the self-sufficiency rate is gradually increasing
.

From the perspective of the marketing mode of the five general plastics, the direct sales rate of PE and PP is relatively high, both above 40%, while the direct sales rate of ABS and PVC is relatively low, and the self-sufficiency rate is not higher than 30%, mainly due to the differences in the customer group, financial capacity and customer distribution center of each plastic product
.

In 2016, the Central Economic Work Conference put forward the task of de-capacity and de-inventory, the trend of PVC de-capacity is more obvious, and the PP capacity expansion plan is still more, if the expansion speed of PP production capacity is not controlled in time, PVC now is the tomorrow
of PP.
Compared with PP, the capacity expansion rate of PE is relatively low, and the price difference between PE and PP is large, and the price difference in East China is 1800 yuan / ton
.
From the current price level of the five general plastics, the price is inversely proportional to the production capacity, the production capacity of ABS is relatively small, the expansion rate of production capacity is relatively slow, and the price of ABS is higher than 10,000 yuan / ton; The PVC production capacity is the largest, the pressure on the domestic supply side is greater, and the price of PVC is lower than 6,000 yuan / ton
.

China's economic growth has entered a shift period, the speed has slowed down, domestic demand for commodities has been affected, and the growth rate of domestic commodity supply should be adjusted
simultaneously.
Only by controlling the speed of capacity expansion can the price of products be relatively firm, otherwise it can only sink deeper and deeper in the excess quagmire, and it is difficult for the market to perform
better.
The top priority of the plastics industry is to control the speed of capacity expansion, adjust the industrial structure, produce on demand according to terminal demand, improve the scientific and technological content of products, and increase the added value
of products.