Modified plastics in China may usher in development

There are more than 3000 enterprises engaged in the production of modified plastics in China, but there are only 70 enterprises with annual capacity of more than 3000 tons. With the expansion of market application, more and more enterprises will be attracted to increase production capacity in the future, which will lead to the expansion of the total market. The application of modified plastics in China has just started and the application ratio of plastics and steel in the economic development of Germany is 63:37, that of the United States is 70:30, and the world average level is 50:50. Compared with the mature development of modified plastics industry in foreign markets, the development of modified plastics industry in China started relatively late, and the application of large-scale modified plastics has just started.

Due to the limitation of production technology, the proportion of domestic modified plastics used in precision manufacturing industry is lower. At present, the application ratio of plastic steel in China is only 30:70, which is far below the average level of developed countries and the world. Considering that China is a big manufacturing country, with the sustained economic development and the continuous improvement of modified plastics technology, the future market demand for modified plastics will be huge. The opportunity of enterprises lies in specialization

and the expansion of market volume may lead to the aggravation of product homogenization. When homogenization becomes more and more serious, the first movers in other fields have built barriers. If enterprises want to develop, they must further specialize in their own fields. < p > < p > automobile and household appliances are almost the competition place of every modified plastics enterprise. Compared with other modification enterprises, Nanjing Julong (300644. SZ) in the rail transit position, domestic modification enterprises are almost unmatched, which is also one of the reasons why Nanjing Julong has higher business income in recent years. Guangzhou Golden Fair Technology (600143. SH) and other enterprises with the main industries of modified plastics, fully biodegradable plastics, environmentally friendly high-performance recycled plastics, high-performance carbon fibers and composite materials will also usher in greater development opportunities.

Raw Material Manufacturing Enterprises will benefit from it

China Customs data show that China imported 7.05 million tons of waste plastics in 2017, and the annual import volume dropped sharply to 76,000 tons in 2018, down 99% from the same period last year. Imports of plastics are blocked, and the recovery rate of waste plastics in China is also declining. China's recycling industry development report (2018) shows that in 2017, China's domestic recycling of waste plastics was 16.93 million tons, down 1.85 million tons from 2016, a decline of 9.9%. The long-term import history of waste plastics in China will be ended. The state's restriction on import of waste plastics is irresistible, and the shrinkage and long-term reconstruction of recycled plastics industry in the short term will become an inevitable trend. With the high pressure of environmental protection, the ban on foreign garbage, and the pressure brought by the function relief of big cities, the waste plastics recycling industry is facing the restructuring of the industry. According to incomplete statistics, 80% of the domestic recycled plastics market is facing the embarrassing situation of environmental protection rectification or banning, and 28 cities provide tens of thousands of "scattered and dirty" enterprises to the Ministry of Environmental Protection.

The price increase of recycled plastic raw materials has become a trend, and the shortage has become a normal trend. The whole imported waste plastics recycling and granulation industry may have a slim future, and millions of tons of raw materials need to find a new direction. For most domestic importers, the promulgation of the ban will mean that they have to re-plan the procurement channels, regardless of the procurement content or source, which will be a process of re-construction. The operation has been defined as non-standard. Strictly speaking, the import of wool needs the production capacity matching its application volume. The customs and other executing departments are also scrutinizing the flow of waste plastics. Therefore, this type of enterprise must be transformed and upgraded. Some enterprises have taken precautions. When the ban was not promulgated, the source of raw materials has been changed from import 100% to domestic production. Most enterprises are still changing. Haitong Securities Research Report pointed out that as an important part of the domestic supply of plastic raw materials, the prohibition of imports will lead to shrinkage of the supply of plastic raw materials, and the domestic production enterprises of plastic raw materials are expected to benefit.