It is expected that China's exports of fluoroplastics will drop by about 20% this year, with exports to the United States, Europe and Japan falling the most, but fluoroplastics companies focusing on China's domestic market have not been affected much. Overall, China's recycled fluoroplastics industry will still grow by at least 15% this year, which should be gratifying. However, as the fluoroplastics industry has maintained an annual growth rate of more than 20% over the years, optimism and anxiety coexist in the market.

The pessimism is mainly concentrated in export-oriented enterprises, and exports have long been one of the main growth engines of China's fluoroplastics recycling industry. Affected by the European debt crisis, the earthquake in Japan and the economic downturn in the United States, China's plastics industry's exports to the traditional markets of the United States, Western Europe and Japan plummeted by more than 30% in the first seven months of this year. However, exports of fluoroplastics to Asia and other emerging markets remained stable, offsetting to some extent the decline in exports to traditional markets. Sinopec Group predicts that this year's export volume of fluoroplastics will fall by about 20%, about 11 million tons.

Industry insiders believe that there are significant risks in industry investment and exports. However, if you look at the decline in exports this year from a positive perspective, fluoroplastic exports actually remain at historically high levels. Next year's export volume is likely to rise to 12 million tons, which will be the second highest export figure in history. In response to the export recession, Shu Zhaoxia said that China's economic policy will focus on how to maintain economic stability, such as proposing solutions to the current situation of large-scale bankruptcy of fluoroplastic recycling companies, and finding a balance between promoting growth and controlling inflation.

The reform of state-owned enterprises, the booming real estate market and the large number of exports, which were the main engines of growth in the past, can no longer promote economic growth. And emerging things such as the low-carbon economy are not yet large enough to drive a new round of growth at this stage. Due to the lack of improvement in the North American and European markets, the decline in some recycled fluoroplastics industries has reached 60% in recent months. After entering September, the export of fluoroplastics has not improved much, and this period is usually the time when foreign Christmas orders are the most, among which the coastal areas of Zhejiang Province are the most affected. Mainly rely on the domestic market, such as central China and North China market.Recycling fluoroplasticsBusinesses "may be in a much better position... not to say they are doing very well, but at least they are getting.

Many analysts said that the recycling fluoroplastics industry is currently facing serious problems of low profit margins and overcapacity. At present, the average profit margin of this industry is 4.9 per cent, which is lower than the average profit margin of 5.45 per cent of the other 17 light industries in the country. He believes that overcapacity and lack of innovation are the reasons for the low profit margin. There are too many fluoroplastics recycling companies in this industry. They have no characteristics to speak of, in the product also follow the trend, the lack of innovation. This leads to low profits. According to this development, industry mergers and acquisitions and integration will eventually be formed, and the industry will enter the transformation stage in the next five years.

There is great potential to be tapped in stimulating the consumption of plastics. At present, China's per capita plastic use is only at the level of South Korea in 1990. In the next five years, the demand for plastics will continue to rise, but the growth rate will remain more stable. CMAI predicts that as China's economic growth slows, the government may adopt a soft landing policy, while the probability of a "hard landing" that some people fear is only 25%. However, there are still many people who are nervous and worried about the global economic situation. After three years, developed countries are encountering new problems, as government stimulus packages have not had the desired effect. And developing countries will have to take action to control inflation, while economic growth is generally slowing in all countries of the world.

This article comes from:www.tflpfa.com