There are more than 3,000 enterprises engaged in the production of modified plastics in China, but there are only more than 70 enterprises with an annual capacity of more than 3,000 tons. In the future, with the expansion of market application of modified plastics, more enterprises will be attracted to increase the production capacity, thus driving the expansion of the total market.
The application of modified plastics in China has just started
In the economic development of Germany, the proportion of plastics and steel application is 63:37, that of the United States is 70:30, and the world average is 50:50. Compared with the development of the modified plastics industry in foreign markets, China's modified plastics industry started late, and the application of large-scale modified plastics has just started.Limited by production technology, the application ratio of domestic modified plastics in precision manufacturing industry is even lower. The current application ratio of plastic steel in China is only 30:70, which is far lower than the average level of developed countries and the world.Considering that China is a big manufacturing country, with the continuous development of economy and the continuous improvement of modified plastics technology, the market will have a huge demand for modified plastics in the future.
The opportunity for business lies in specialization
The expansion of the total market may lead to the intensification of product homogenization. When the homogenization becomes more and more serious, the pioneers in other fields have built up the barriers, and enterprises have to further specialize in their own fields if they want to develop.
Automobile, home appliance is the place that every modified plastic enterprise competes for almost.Compared with other modification enterprises, nanjing julong (300644.sz) is almost unbeatable in domestic modification enterprises in the field of rail transit, which is one of the reasons for the higher operating income of nanjing julong in recent years.Guangzhou golden hair technology (600143.sh) and other enterprises whose main businesses are modified plastics, fully biodegradable plastics, environmentally-friendly and high-performance recycled plastics, high-performance carbon fiber and composite materials will also embrace greater development opportunities.
Raw material manufacturers will benefit
China imported 7.05 million tons of waste plastics in 2017 and 76,000 tons for the whole of 2018, down 99 percent year-on-year, according to Chinese customs data.The import of plastic into the customs encountered obstacles, the domestic recycling rate of waste plastic is also declining.According to the development report of China's renewable resource recycling industry (2018), China's domestic waste plastic recycling volume in 2017 was 16.93 million tons, down 1.85 million tons from 2016, a decrease of 9.9%.
The history of domestic long-term import of waste plastics will be ended, the country's restrictions on the import of waste plastics is unstoppable, and the shrinkage and long-term reconstruction of the renewable plastics industry in the short term will become an inevitable trend.Environmental pressure, the ban on foreign waste, coupled with the pressure of functional dredging in big cities, the waste plastics recycling industry is facing industry restructuring.
According to incomplete statistics, 80% of the domestic renewable plastic market is facing the embarrassing situation of environmental rectification or banning. A total of 28 cities have provided tens of thousands of "messy" enterprises to the ministry of environmental protection.
The rising price of recycled plastic materials has become a trend, and the shortage has become the norm.The whole import of waste plastic recycling granulation industry may therefore be remote, millions of tons of raw material gap need to find a new direction.
For most of the domestic import traders, the promulgation of the ban will mean that they have to re-plan the procurement channels, and both the content and source of procurement will be a reconstruction process.
This kind of operation has been defined as non-standard. Strictly speaking, the production capacity of imported wool material should match its application amount. The customs and other executive departments are also checking the flow direction of waste plastics.Some enterprises have prepared for a rainy day. When the ban was not issued, they had already completed the transformation of raw material source from import * to domestic production.Haitong securities research report pointed out that waste plastics as an important part of domestic plastic raw material supply, import ban will bring plastic raw material supply contraction, domestic plastic raw material production enterprises are expected to benefit.