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

Two Eastman buildings among 10 biggest energy savers in national contest

April 22, 2014 11:35 am ET

Two offices at the headquarters of Eastman Chemical Co. in Kingsport, Tenn., ranked in the Top 10 for energy efficiency in the latest Energy Star...    More

Image

Material Insights: Shell Chemical meets with residents

April 21, 2014 2:16 pm ET

Power outage at a PE plant and the return of a PVC feedstock plant after a fire on this week's Material Insights.    More

DuPont: Asia's food packaging market at a major transition point

April 21, 2014 1:26 pm ET

DuPont Co. touted its packaging innovations and applications, and updated the firm's commercial status at a media event two days before the Chinaplas ...    More

Officials warn China's PVC overcapacity will only get worse

April 21, 2014 3:47 pm ET

Despite worsening overcapacity, China still imports a million tons of PVC.    More

Global plastics recycling industry seeing an impact from the 'Green Fence'

April 21, 2014 12:52 pm ET

Last year's Green Fence action by the Chinese government is having a lasting impact on the global plastics recycling industry, said many of the attend...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events