Speaker: China's engineering plastics sector needs controlled growth

Rebecca Kanthor
PLASTICS NEWS CORRESPONDENT

Published: December 26, 2013 7:53 am ET
Updated: December 26, 2013 8:01 am ET

Related to this story

Topics Materials, Materials Suppliers, China
Companies & Associations Society of Plastics Engineers (SPE)

SHANGHAI — China's engineering plastics industry needs to grow mindfully, Zheng Kai, secretary general of the China Synthetic Resin Association, told Plastics News.

"The biggest challenge is that the production capacity is greater than the need," he said, in an interview on the sidelines of the Society of Plastics Engineers' first conference in China. "This is a big problem in China especially."

He gave as an example polybutylene terephthalate resin, which he said has an annual production capability of 900,000 tons in China, but only has an actual need of 300,000 tons.

"So it has created a lot of waste of resources," he said. "We need to allocate this production capability in a reasonable manner, and avoid vicious competition."

Zheng presented an update on China's plastics industry to conference attendees. According to the statistics he presented, the growth rate for China's plastics processing industry is slowing. Production as a whole continues to grow, but at a slower pace in 2012 than in the previous year.

Zheng reported that last year China's plastic resin output was 52.1 million tons, up 5.5 percent from the year before. Net imports were 14.39 million tons, and apparent consumption was 79.743 million tons, representing an increase of 4.9 percent.

In the first half of 2013, 28.3 million tons of plastic resin was produced, an increase of 7.8 percent over the same period a year ago. By 2015, he told the conference, China's synthetic resin output will reach about 64 million tons.

Zheng told attendees that while in the past the growth rate was always 8-9 percent, this year it was 7-8 percent.

"My personal belief is that we're not even at 8 percent," he said. Later he told Plastics News that the growth rate numbers seem a bit off to him. "We're always a bit above the GDP, but [in 2013] the GDP was above 7.5 percent," he said. "So either our numbers are too low or the GDP numbers are too high."

Currently there are 13,246 plastic processing enterprises in China with sales of 20 million yuan or more. 57,818,600 tons of plastic products were produced, an increase of 8.99 percent from the same period a year ago. Some 13,821,600 tons of plastic products were exported, valued at about $49 billion.

Engineering plastics consumption will rise to more than 3 million tons this year, with about half of that imported. PBT consumption, frequently used in China's electronics manufacturing sector, is increasing the fastest, Zheng told Plastics News. But polycarbonate is still consumed the most, making up about 50 percent of the total engineering plastics consumed. This is because of its use in construction, water bottles, food manufacturing, telephones and computer housings.

Those in the industry need to be mindful and not be distracted by profitability, he warned attendees during his speech.

"We must have a long-term view. For China's plastics industry it is unsustainable. If we continue to blindly develop we are going to kill ourselves."


Comments

Speaker: China's engineering plastics sector needs controlled growth

Rebecca Kanthor
PLASTICS NEWS CORRESPONDENT

Published: December 26, 2013 7:53 am ET
Updated: December 26, 2013 8:01 am ET

Post Your Comments


Back to story


More stories

Image

Sabic: Rapid demand growth led to Ultem shortage

December 18, 2014 12:06 pm ET

Sabic Innovative Plastics has been increasing production capacity for its Ultem polyetherimide but it still got caught short by increasing demand for ...    More

McCann expanding in Ohio

December 17, 2014 11:59 am ET

Compounding firm McCann Plastics will spend $1.2 million on an expansion project that will create 15 new jobs at its plant in Green, Ohio.    More

Image

Bayer launches PC sheet production in Guangzhou, China

December 17, 2014 6:00 am ET

Bayer MaterialScience (BMS) has started its new polycarbonate sheet production plant at its Guangzhou, China, site.    More

Image

Shipping slowdowns add to season's stress

December 16, 2014 4:02 pm ET

Toy companies know what they want for Christmas: an end to crippling shipping delays at West Coast ports.    More

Image

Ecolean expanding flexible packaging production in China

December 16, 2014 3:07 pm ET

Flexible packaging maker Ecolean AB is opening a new factory and warehouse in China to increase production.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events