Influences of Waste Plastic Prohibition on PC Market

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Influence of Waste Plastic Prohibition on PC Market

Watching Focus of PE Industry Next Week 

China AQSIQ (Hekou) to Reject Solid Waste on Importing

The Influence of Waste Plastic Prohibition on PC Market 

By the end of 2017, all solid wastes that may cause environmental pollution will be prohibited from importing.

By the end of 2019, all replaceable solid wastes will banned from importing.

The prohibition aims to improve the solid wastes management. Each industry is required to make a schedule to prohibit the import of solid wastes. All relevant departments should cooperate to realize this goal, and the import of solid wastes should be completely prohibited by 2019.

This prohibition was issued on July 18, 2017, and the influence will gradually be seen from H2, 2017.

The HS code 39159090 includes the plastic offcuts and wastes. Here we take the HS code 39159090 for example to see the recent plastics wastes import trend.

The HS code 39159090 includes recycled PP and recycled engineering plastics, among which recycled PC took a proportion of 13%. According to SCI, the import volume of waste CD material in South China has been decreasing in recent years.

Recently, the PC price has been surging in China market, due to the tight supply. The overhaul of some PC units was the leading factor. The virgin PC market was not seriously impacted by the prohibition. As the environmental protection policies are becoming increasingly strict, the waste PC market will gradually disappear.

Watching Focus of PE Industry Next Week

The Chinese PE prices will keep strong next week. The PE supply will be tight in the USD market, because more source of goods are supplied to the RMB market. The PE USD prices have $5-10/mt space to rise. In the next week, the players should focus on the following aspects of the PE import & Export market.

1: The offers of forward cargos from foreign traders moved high. The cost of imported goods will rise sharply later, including HDPE materials and LDPE foaming materials from Iran, the HDPE and LDPE materials from Thailand, and some source of goods from the Middle East.

2: The demand from some downstream major factories weakened against lower operating rates due to the environmental protection policies.

3: More source of goods (can open L/C) from Iran were heard. The financial pressure of some players could be eased.

4: The PE demand in Asia warmed up. PE prices continued to rise.

To sum up, the Chinese PE prices will keep strong next week. The PE supply will be tight in the USD market, because more source of goods are supplied to the RMB market. The PE USD prices have $5-10/mt space to rise.

China AQSIQ (Hekou) to Reject Solid Waste on Importing

Recently, a batch of prohibited solid waste was imported in the name of ferrosilicon, which was intercepted and captured by Hekou Administration of Quality Supervision, Inspection and Quarantine. The administration required to send the imported solid waste back. The batch of solid waste was imported from Vietnam, which weighed 53.76mt. And its declared value was $62,684.16.

This year, the General Administration of Quality Supervision, Inspection and Quarantine deployed unitedly that Hekou Administration started the nine-month crackdown on illegal activities of importing foreign wastes. The action aimed to crack down and control intensively the illegal activities about foreign wastes, further standardizing the management of imported solid wastes and effectively promoting national ecological security.