There are more than 3,000 domestic companies engaged in the production of modified plastics, but there are only more than 70 companies with an annual production capacity of more than 3,000 tons. In the future, with the expansion of market applications, modified plastics will attract more companies to increase production capacity. Drive the expansion of the total market.
China's modified plastics application just started
In the economic development of Germany, the ratio of plastics and steel applications is 63:37, the United States is 70:30, and the world average level is also 50:50. Compared with the mature development of the modified plastics industry in foreign markets, the modified plastics industry in China started late. The application of large-scale modified plastics has just begun. Limited by production technology, the proportion of domestically modified plastics used in precision manufacturing is even lower. China's current plastic steel application ratio is only 30:70, which is far lower than developed countries and the world average. Considering that China is a large manufacturing country, with the continuous development of the economy and the continuous improvement of the technology of modified plastics, the market demand for modified plastics will be huge in the future.
The opportunity for the company is to be professional
The expansion of the total market may lead to an increase in product homogeneity. When homogeneity is getting worse, barriers have already been established by other entrants in other fields.If the company wants to develop, it must further specialize in its own field. Do fine.
Automobiles and home appliances are almost a must for every modified plastics company. Compared with other modified enterprises, Nanjing Julong (300644.SZ) is almost unmatched by domestic modified enterprises in the rail transit position. This is one of the reasons for Nanjing Julong's higher operating income in recent years. . Guangzhou Jinfa Technology (600143.SH) and other companies whose main industries are modified plastics, fully biodegradable plastics, environmentally-friendly high-performance recycled plastics, high-performance carbon fibers and composite materials will also face greater development opportunities.
Raw material production enterprises will benefit from it
According to Chinese customs data, China imported 7.05 million tons of waste plastics in 2017, and the annual import volume in 2018 plummeted to 76,000 tons, a year-on-year decrease of 99%. Imports of plastics are blocked, and the domestic waste plastic recycling rate is also falling. "China's Recycling Resources Recycling Industry Development Report (2018)" shows that in 2017 China's domestic waste plastic recycling volume was 16.93 million tons, a decrease of 1.85 million tons from 2016, a decrease of 9.9%.
The history of long-term domestic imports of waste plastics will be ended. The state's restriction on the import of waste plastics is irresistible, and the shrinkage and long-term reconstruction of the recycled plastics industry will become an inevitable trend. Environmental pressure, ban on foreign garbage, and the pressure brought about by the declining function of big cities, the waste plastic recycling industry is facing industry restructuring.
According to incomplete statistics, 80% of the domestic recycled plastics market is facing the embarrassing situation of environmental protection rectification or ban, and 28 cities have provided tens of thousands of "scattered pollution" companies to the Ministry of Environmental Protection.
Increasing prices of recycled plastic materials have become a trend, and shortages have become the norm. The entire imported waste plastics recycling and granulation industry may have a slim future. The raw material gap of several million tons needs to find a new direction.
For most domestic import traders, the promulgation of the ban will mean that they must re-plan the procurement channels, regardless of the content of the procurement or the source of procurement will be a process of reconstruction.
Traders who are purely imported and do not have a processing plant themselves. This operation has been defined as non-standard. Strictly speaking, imported wool needs to have a production capacity that matches its application volume. Customs and other enforcement departments are also investigating the flow of waste plastic. Therefore, this type of enterprise must transform and upgrade. Some enterprises have already prepared for it. When the ban was not promulgated, the transformation of the source of raw materials from 100% to domestic production has been completed, and most enterprises are still making changes. The Haitong Securities Research Report pointed out that waste plastics is an important part of the domestic supply of plastic raw materials. The ban on imports will cause the shrinkage of the supply of plastic raw materials, and domestic plastic raw material manufacturers are expected to benefit.