SCI Plastics News

The unstable production extends in the PC market

The China PC market extended the uptrend within this week. The supply was tight, especially the products from China domestic producers. The unstable operating rates led to tight supply and high prices. On Thursday, the offers from Luxi Chemical surged by RMB 600/mt and reach RMB 21,200/mt. Most producers in East China held positive sentiment. Offers were largely the same, and producers and traders faced high pressure in sales. Offers for some grades of PC in South China went down, due to the ample supply.

As of closing, mainstream negotiations for low-end injection grade were at RMB 21,500-21,800/mt in East China, and reference negotiations for middle and high-end materials were at RMB 22,000-23,500/mt.

China will ban imports of 24 kinds of garbage by the end of 2017

The LLDPE futures prices surged to over RMB 9,600/mt on July 20, 2017. As of noon, the futures up by 4% on the day, exceeded the high point on April 7, 2017. One news played an important role on pulling the futures prices up. 

On July 17, China clearly put forward with the WTO that the imports of 24 kinds of garbage would be banned by the end of 2017 in order to promote environmental protection activity process. 

China began to restrict and adjust the structure of recycling industry amid environmental problems from 2012. The substitution of PE for recycled PE has been greatly demonstrated. According to Custom’s data, China imported 2,532.4kt recycled PE in 2016, down by 2,000kt from 2015. The demand for PE virgin materials is expected to increase.

However, the actual impact on the market demand is expected to be gradually generated. 

Research on production planning and raw materials consumption of a household appliance enterprise in East China

Recently, there was a research to a household appliance enterprise in East China. That enterprise produced small household appliances such as refrigerator, air-condition, washing machine and others. The enterprise mainly sold products to domestic markets, and exported part products to foreign markets, with domestic sales and export sales respectively accounting for around 70% and 30%. The integrated production capacity was over 30 million sets, with more than 1,000mt of average demand volume for raw materials. The enterprise planned to produce 1 million sets of air-condition in June when the operating rates didn’t change a lot from May. However, the operating rates of this enterprise in July and August are expected to decline. The production of refrigerator is supposed to be 700,000 sets. Due to the coming selling season and the end of production season, the enterprises’ recent purchases on PS are largely on a need-to basis. The raw material inventory is available for about 30 days, and enterprises are unwilling to replenish the stock a lot.