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On June 26, the 12th China Plastics Industry Conference (CPIC) was held in Hangzhou, China. Guo Yongxin, the executive secretary and spokesperson of China National Light Industry Council (CNLIC) attended this conference and made an address on China’s plastics industry and its future tendencies in 2019. Mr. Guo's speech was mainly centered on three aspects; firstly, the development of the plastics industry. Secondly, the challenges faced by plastics industry in China, and at last, the development tendencies of China’s plastics industry.
Development of China's Plastics Industry
According to Guo Yongxin, the output of China's plastics industry is decreasing, and the operation revenue is increasing, leading to higher profitability and increasing exports.
1.Output
The output of China’s plastics industry was 28.86 million tons from January to May of 2019, with year-on-year growth of -1.21%. Major production hubs are Guangdong, Zhejiang, Hubei, Shandong, Fujian and Jiangsu Provinces.
2.Operation Revenue
The total revenue of the plastics industry was 576.1 billion Yuan from January to April of 2019, with year-on-year growth of 3.83%. The pie chart illustrates major outputs.
3.Profits
The profit of plastics industry was 26.31 billion Yuan from January to April 2019, with year-on-year growth of 8.88%.
4.Exports
The export volume of China's plastics industry was 21.855 billion USD from January to April 2019, with year-on-year growth of 6.2%, which indicates the robust competitiveness of China's plastics industry in the international market. And China’s plastics products were mostly exported to United States, Japan, and Vietnam, and some other countries and regions, such as Hong Kong, India, Britain, German, Canada, Australia, South Korea, and so on.
Challenges
China's plastics industry is facing a lot of challenges in 2019, and these challenges mainly came from three aspects.
China's raw material structures have changed significantly in the broader context of largescale environmental protection policy reform. Given China's implementation of a ban on importation of foreign plastic waste more than one year ago (see relevant CL news [1]), relevant enterprise can no longer use foreign plastic waste for raw materials, which impacted the raw material system, pricing and production.
International trade has been impacted by the China-US trade war (see relevant CL Expert Article [2]).
Public concern regarding the negative environmental impact of the plastics industry is mounting.
Development tendencies
In order to address the challenges, the plastics industry needs to take several measures:
To strengthen and accelerate scientific innovation. Innovation must focus on reinforced flame-retardant polyurethane foam insulation plastic, breathable membrane material, fully biodegradable material, degradable mulch film and large diameter, high strength drainage pipe, etc. And the polymer Materials of plastics in the areas of aerospace, rail transit, ships, automobiles and so on. From the aspect of equipment, the development tendencies seen in the plastics industry are ERE stretching flow plasticizing and extrusion intelligent equipment, as well as molding processing equipment for composite super-large parts, and some equipment technology for intelligent manufacturing.
To push forward the development of intelligent manufacturing.
Strengthening international cooperation is vital.
Strengthening brand management.
