Chinese Pvc

China Plastics Industry

Market Report

Prepared by : Adsale Exhibition Services Ltd

Date : October 23, 2004

PVC

5100 4006.5 2292.4 45.3

PS 1049.6 1009.2 1564.3 53.9

ABS 494.6 475.6 1790.1 21.4

Tota l 14444. 7 13889.1 13071.2 158.4

Table 2: Apparent consumption of 5 major synthetic resin in China in 2003 Unit: ktonnes

Type Output Import Export Apparent

consumption Import/Apparent

consumption (%)

PE 412.96 4690.1 25.9 8793.8 53.3

PP 426.82 2734.3 11.9 6990.6 39.1

PVC 400.65 2292.4 45.3 6253.6 36.7

PS 100.92 1564.3 53.9 2519.6 62.1

ABS 47.56 1790.1 21.4 2244.3 79.8

Total 1388.91 13071.2 158.4 26801.9 48.8

Table 3: 1999-2003 Statistics on approved import & export of wasted plastics Unit: ktonnes

Year Approval

quantity Actual import Increase of import

over the same period in

previous year (%)

2003 5434 3023.9 23.0

2002 3870 2458 10.3

2001 4580 2227.6 11.0

2000 3238 2007 44.6

Table 4: 2002-2003 Production Capacity of plastic additives Unit: ktonnes

Plastic

additive Number of

producers Production

capacity Output Apparent

consumption

2002 2003 2002 2003 2002 2003

Plasticizer 50 1500 1500 650 550 1000 950

Heat

stabilizer 90 200 210 80 78 100 105

Fire

retardant 70 150 170 70 80 80 90

Impact

modifier 60 100 120 70 75 80 90

Foaming

agent 45 80 80 60 60 50 50

Lubricant 60 70 75 43 45 50 55

Antioxidant

agent 45 20 22 18 20 30 33

Light

stabilizer 30 9 10 1.5 2 4.5 5

Others 80 80 90 65 70 80 85

Total 550 2200 2377 1050 980 1474.5 1463

Note: 85% of the quantity listed in Table 4 is used in plastics processing

Table 6: Customs statistics on import of plastic products between January to December

2003

Import volume(metric tonnes) Import value(1000 USD )

Type of product Accumulated

volume

between

January to

December Increase over

the same

period of the

previous year

(%) Accumulated

volume

between

January to

December I ncrease

over the

same

period of

the

previous

year

(%)

Plastic product 1640790.9 1.26 5516178 22.04

1.plastic filament and

profile 11088.9 -5.49 28237 12.56

2.Plastic pipe 31214.7 16.74 176962 25.90

3.Plastic board and sheet 870246.8 1.80 2425740 19.18

4.Artificial leather,

synthetic leather 118395.9 -11.88 503586 -2.49

5.Plastic flooring products 32663.4 35.56 51140 26.80

Data obtained from China General Administration of Customs

In general, there is a favorable trade balance in the import and export of plastic products though such favorable balance is mainly the result of the increase in the total export volume of plastic products. So far high added value and high technical products among exported products are relatively few in number and mainly concentrated in limited number of countries and regions. Most enterprises lack experience in planning multi-national business strategy and standard operation format.

1.3 Briefing of the key enterprises

According to statistics from January to December 2003, there were all together 8237 companies producing plastics products in China with reasonable production scale, 10% of which were large and medium sized enterprises. Companies with turnover over 100 million amounted to 527, achieving total product sales revenue of RMB 136.84 billion. This means that 6.3% of the companies in the industry accomplished 47.7% of the total revenue in plastics products. In 2003, there were 15 plastic processing companies achieving RMB 1 billion of product sales revenue. Among them, three companies achieved sales revenue over RMB 3 billion and 6 companies over RMB 2 billion. The fast development of plastics product industry has accelerated the speed of industrial agglomeration.

1.4 Situation

...