As the largest importer of "foreign waste", China is gradually adopting an import waste import policy.
According to China Customs data, China imported 7 million tons of waste plastics in 2017. In 2018, imports fell to 76,000 tons, down 99% year-on-year.
Imported plastics have entered barriers, and the recycling rate of used plastics in China is also falling.
According to the China Renewable Resources Recycling Industry Development Report (2018), the amount of domestic garbage plastics recovered in 2017 was 16.93 million tons, a decrease of 1.85 million tons from 2016, a decrease of 9.9%.
Under the recent environmental pressure, foreign waste ban, coupled with the pressure of big city functions, the waste plastics recycling industry is facing industry restructuring.
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To understand the situation in the plastics recycling industry, it is important to understand the source of plastic waste.
According to research by the Marine Conservation Association, plastics in the ocean are mainly from land waste.
Most plastic waste reaches the ocean through rivers, dating back to its source, primarily through ten important rivers flowing through densely populated areas of Asia and Africa. These areas lack adequate waste treatment and recycling facilities, resulting in significant waste discharges.
The Organisation for Economic Co-operation and Development (OECD) issued a report in 2018 stating that global plastic waste generation is continuing to increase, with more than 300 million tons of funds flowing into the environment each year, with losses of about $13 billion.
A portion of plastic waste can be incinerated and recycled, but waste and landfill plastic waste is increasing in the environment and is expected to reach approximately 12 billion tons by 2050.
A large amount of plastic waste behind plastic waste must have a huge industrial chain. In the past three decades, China has been the largest importer of foreign waste, accounting for a large proportion of plastic waste. The domestic plastics recycling industry also relies on imports.
Plastic waste survived, but the situation has changed dramatically in recent years.
In terms of import channels, domestic waste plastics are banned at the end of 2017, and industrial waste plastics are completely banned from the end of 2018.
This means that the long-term import history of China's waste plastics will end. The country's restrictions on the import of waste plastics are unstoppable, and the shrinking and long-term reconstruction of the recycled plastics industry has become an inevitable trend in the short term.
There are also environmental issues that have been lingering in recent years.
From the beginning of 2001 to the present, with the clean-up work of Hebei Wen'an and Shandong Zhangqiu; in 2013, environmental protection rectification gradually began. Since the implementation of the most stringent environmental protection laws and the normalization of environmental remediation in 2015, the production of small and medium-sized enterprises of recycled plastics in China has been unstable.
Sexual life is getting worse.
According to incomplete statistics, 80% of the domestic recycled plastics market faces the embarrassing situation of environmental rectification or ban, and 28 cities have provided tens of thousands of "spreading" and pollution "enterprises to the Ministry of Environmental Protection.
If environmental protection and rectification close small factories and home workshops, the "plastic ban" directly affects the supply of large-scale recycled pellet factories. The entire imported waste plastics recycling granulation industry may lead the trend with millions of tons of raw materials.
The gap needs to find a new direction.
The collapse of the recycled plastics industry
The rise in raw material prices has become a trend, and commodity shortages have become the norm.
China Recycling Resources Recycling Association revealed that the comprehensive operating rate of recycled plastics in China is only about 30%. In the next few years, the corresponding suppliers have been in a state of tension for a long time. Because of this, under the pressure of continued falling prices of new materials, the price of recycled materials is still deadlocked.
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At the same time, the demand for domestic recycled materials is not good, the market is weak, and production demand will continue to decrease.
For example, the market for recycled plastics such as P-E, P-P, PV-C, AB-S, P-S, and PE-T has been flat recently. Most recycled plastics manufacturers must be cautious and have to withdraw from the market.
From the background of the industry, the recycled plastics industry is currently facing an unprecedented development dilemma.
First of all - under the influence of the national ban on plastics, the price of recycled plastics has risen and manufacturers have been tightly supplied; on the other hand, the consumption of recycled materials has decreased and the demand has been slightly poor. The entire renewable materials industry urgently needs to break the market deadlock.
Who benefits from it
Since the cost of importing waste plastics from abroad has been lower than that of imported plastic raw materials, waste plastics can still maintain good processing performance after processing. Imported waste plastics are favored by manufacturers in the renewable resource industry, and even rely on them to reduce costs.
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For most domestic import traders, the promulgation of the ban means that they must re-plan the procurement channels, regardless of the procurement content or source of procurement, etc. will be a re-run process. -construction.
If it is a pure import trader and there is no processing plant, this operation is defined as non-standard. Strictly speaking, imported wool needs to have the same production capacity as its application, and customs and other executive departments also strictly inspect waste plastics.
It is therefore necessary to convert and upgrade this type of business.
Some companies have taken precautionary measures. When the ban was not promulgated, the conversion of raw materials from 100% to domestic imports has been completed, and most companies are still undergoing transformation.
Haitong Securities Research Report pointed out that waste plastics as an important part of domestic plastic raw materials, banned imports will bring about a shrinking supply of plastic raw materials, but domestic plastic raw material manufacturers are expected to benefit.
In the past three years, although the overall production and sales of recycled plastics in China have declined, the scale of demand and the promotion of green environmental protection have led to a certain rebound in the scale of China's recycled plastics market.
Biodegradable and modified plastic tuyere
Competition in the Chinese recycled plastics market will be further exacerbated by restrictions on the import of waste plastics.
The living space of SMEs in the recycled plastics market will continue to shrink, and the pressure on pure trade enterprises will be even greater. The risks and choices faced by different types of companies will be very different.
Since the implementation of the "plastic limit order" in June 2008, the Chinese plastics industry has actually ushered in a wave of "golden development period".
It has led to a loss of sales of ultra-thin plastic bags of low quality and low quality. Many small businesses and small workshops in the industry have been shuffled. But - yes, the number of ultra-thin plastic bags in large plastic packaging companies is small and the transition is relatively easy. Therefore, most of them said they were not affected.

Big companies have more market opportunities, such as Gezhouba (600068.SH) and Enlighten Sander (000
826.SZ) and other listed central enterprises and listed companies have entered the plastic recycling industry, bringing modern capital operation and management concepts into the industry, becoming the leader in these industries, and promoting the development cooperation of the plastic recycling industry through capital operation and industry.
Medium-sized enterprises are transforming into large-scale development, and the return of technological innovation cannot be ignored.
Home-based manufacturers can choose to enter the park, avoid policy red lines, and work with the group to reduce operating costs and market risks.
In other respects, degradable market sales of plastic bags, environmentally friendly thick plastic bags, non-woven bags and other products have become better, stimulating enterprises to adjust product structure, accelerate technology research and development, the overall profit rate of the plastics industry will also be significant Upgrade.
The National Development and Reform Commission is preparing to study and adjust the "plastic limit order" with relevant departments, research and develop relevant implementation plans, limit the use of non-degradable plastic packaging, parcel delivery industry, and take-out industry in e-commerce, and urge local governments , especially the city, strengthen implementation.
Relevant departments will also promote new materials that are more environmentally friendly.
These policies are expected to provide opportunities for fully biodegradable plastics.
On the other hand, the production and demand of biodegradable plastics in the world have shown a rapid growth trend in recent years. According to relevant agencies, the global demand for biodegradable plastics will reach 3.22 million tons by 2020.
At present, there are more than 3,000 companies in China engaged in the production of modified plastics, and there are only more than 70 enterprises with an annual production capacity of more than 3,000 tons. No-coming, with the increasing use of modified plastics, more and more companies will increase production capacity.
This release contributed to the expansion of the entire market.
The ratio of plastics and steel used in German economic development is 63:37, the United States is 70:30, and the world average is 50:50. Compared with the mature development of the modified plastics industry in foreign markets, China's modified plastics industry started late.
The application of large-scale modified plastics has just begun.
Due to the limitation of production technology, the proportion of domestically produced modified plastics in precision manufacturing is lower. China's current plastic steel application ratio is only 30:70, far lower than the developed countries and the world average.
Considering that China is a big manufacturing country, with the continuous development of the economy and the continuous improvement of modified plastic technology, the demand for modified plastics in the future market will be enormous.
Expanding the total market volume may lead to an increase in product homogeneity. As homogenization becomes more and more serious, other areas have already preemptively created obstacles. If companies want to grow, they must focus further on their field.
Cars and household appliances are almost a must-have for every modified plastic company.
Compared with other modified companies, Wuxi Jiahong Plastics has opened up a new course in these fields.