Polyolefin Research Report - Research Report on Thin Film and Plastic Fabric Industry in Zhejiang Province

January 15, 2019

Plastic knitting industry

Plastic knitting is the most important downstream area of PP, mainly used in packaging fields such as grain, fertilizer and cement. According to the use of plastic products, the woven products can be divided into eight categories: cement bags, woven bags, container bags, tarpaulins, geotextiles, mesh bags, fertilizer bags, silk ropes and other plastic products. Among them, the highest proportion of the eight categories are cement bags and woven bags. The woven bags include various chemical raw materials bags, feed bags, food packaging rice, noodles, sugar, salt bags, and transparent. All ordinary woven bags such as bags.

1. Imported recycled materials fell significantly.

According to the feedback from the research enterprises, since the end of last year, the number of imported materials has dropped significantly. This year, the import of recycled materials in the second quarter is more tense than that in the first quarter. The research companies mainly produce rice bags, fertilizer bags and chemical bags. This year, mainly imported recycled PP pellets from Vietnam. However, due to the implementation of environmental protection policies in Vietnam, the number of imported recycled wool in Vietnam has decreased, which has made the recycled pellets become tense. The return price has also been affected by the relationship between supply and demand. The cost of the enterprise has increased, and the profit of the enterprise unit has declined. At present, the price difference between imported recycled PP pellets and domestic PP brushed yarn is around 1500. In the case of a decrease in the amount of imported recycled particles, the company is more inclined to increase the proportion of new materials used instead of domestically produced materials. Compared with imported recycled materials, domestically produced materials have more impurities and lower tensile strength, while imported materials are mostly better quality products discarded after one-time use. The indicators are similar or even better than PP powders. Powder. At present, some enterprises account for about 50% of the domestically-returned materials and imported materials. The proportion of research enterprises returning materials and new materials is 8:2. The research enterprises mainly produce rice bags, fertilizer bags and chemical bags.

2, environmental protection makes the order transfer

This year's enterprise orders in Xiaojiang District of Wenzhou City showed a significant increase compared with last year, mainly due to the absorption of some orders that were forced to shut down enterprises due to environmental protection. At present, the processing fee for the plastic knitting industry is roughly 2,500 yuan / ton. Almost all factories in the region are operating at full capacity, but the profits are also reduced due to fierce competition and increased costs. In addition to the better sales of cement bags this year, the sales of fertilizer bags and grain belts are not satisfactory. At present, the company's raw material inventory is at least half a month to 1 month, and the finished product inventory is about half a month. The proportion of returning Chinese raw materials and imported materials is about half. 

To sum up

At present, the core problem is that Bopp's finished goods inventory is relatively high, the industry is at a loss, how to reduce the finished goods inventory to normal level and how to improve corporate profits become a problem for the current enterprise. For this reason, Bopp enterprises consider whether to take large-scale joint parking. The way to come from the regulation of the industrial balance. The rise of Sino-US trade wars, domestic export data and the decline in total retail sales of consumer goods are releasing unfavorable signals. At the same time, with the gradual recovery of maintenance equipment in the upstream of PP, supply is also facing growth expectations, and the price of PP drawing may be under pressure. However, at the same time, in the face of bopp raw material inventory and the inventory of the tape mother roll are not high, some companies said that the price of PP drawing 9000 may have replenishment demand, if it falls to 8500, it may attract more enterprises. Speculation of raw materials.