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2018 Plastic Industry News
- Jan 07, 2019 -

Looking back on the past 2018, the domestic plastics industry can not be said to be difficult. At the beginning of the year, due to the force majeure of international chemical giants, PA prices have skyrocketed; domestic environmental protection policies have become stricter, and the import of waste plastics has been banned, resulting in a significant increase in the cost of raw materials for some enterprises. At the same time, industry mergers and acquisitions frequently occur, and international giants' investment in China is also expanding.

    PA "I ride a dust"

    Due to upstream raw materials, supply and demand, international crude oil, RMB exchange rate,

The impact of policies and regulations (the upstream raw material supply problem is the main factor), since the beginning of 2018, the price of PA has skyrocketed.

    Since the upstream raw materials of PA66 are hexamethylenediamine and adipic acid, adiponitrile is a raw material for the synthesis of hexamethylenediamine, and it is mainly monopolized by some large multinational companies. In the case of INVISTA, BASF and AOC, these three capacities are combined. It accounts for 74% of global production capacity and is in a state of high oligopoly. Due to the force majeure of these manufacturers' adiponitrile devices in the early 18th year, the global supply of adiponitrile and hexamethylene diamine is unstable and the price is high. The raw materials of PA66 producers were also limited, which led to further tight supply and demand for PA66. Since the beginning of last year, INVISTA, Solvay, Austin, BASF, DSM, Dommer, LANXESS and other companies have issued price increases. Announced the price increase of PA66 produced by its company.

    In terms of PA6, the price of PA6 has been highly volatile due to the upstream raw material and market supply and demand.

    End the era of waste plastics imports

    The ban on waste started in 2017 reached a climax in 2018. After the ban on the import of waste plastics at the end of 2017, the import of waste plastics in 2018 also plummeted with the strict implementation of the “prohibition of waste”, from more than 7 million. Ton to 70,000 tons, the change in one year is so huge, the entity is now strictly "forbidden waste", and at the same time, with the import of waste plastics from industrial sources on December 31, 2018, the total ban and increasing environmental protection and rectification In 2010, the domestic waste plastics industry will face a reduction in the source of waste plastics. The standardized cost, environmental protection cost and procurement cost of recycled plastic recycling enterprises will increase. In addition, the sharp drop in international oil prices will further reduce the price difference between recycled plastics and virgin plastics. The competition in the recycled plastics market will further increase. The survival of the fittest in the industry will promote industrial transformation and upgrading, and the domestic recycled plastics industry will also undergo a major reshuffle.

    M&A, investment in China, international giants frequently move

    In January, Saudi Basic Industries Corporation (SABIC) acquired a 24.99% stake in Clariant, and SABIC became a shareholder of Clariant.

    In June, the European Union conducted an investigation into BASF's acquisition of Solvay's global polyamide business. For this reason, BASF provided a “remedy” for the acquisition of Solvay's polyamide business.

    In August, Leander Basel completed the acquisition of Shulman, more than doubling the existing composites business of Leander Basel and expanding the company's growing automotive, building materials, electronics and packaging. The share of the high-margin end market.

    Thailand* Petroleum PTT also completed a joint venture agreement with Mitsui Chemicals Co., Ltd. (MCI) in the same month. Both parties passed the PET and PTA global chemical joint venture.

    In September, Clariant and Saudi Basic Industries Corporation (SABIC) planned a joint venture for high-performance materials to form a business area of “high-performance materials”.

    Not only mergers and acquisitions, international giants also frequently invest in China in 2018.

    In August, INVISTA announced plans to invest more than US$1 billion to build a plant with an annual output of at least 300,000 tons of adiponitrile. The goal is to start construction in 2020 and start production in 2023.

    In the same month, the MSI expansion project of Huntsman Shanghai Hao Factory was officially put into operation and operated. At this point, Huntsman's total production capacity in China has reached 400,000 tons, accounting for almost half of the company's global production capacity.

    In September, ExxonMobil plans to invest $1 billion in Huizhou, which will include a flexible feed steam cracking unit with an annual output of 1.2 million tons of ethylene, two high performance polyethylene lines and two differentiated aggregates. Propylene production line. The project is scheduled to go into production in 2023.

    In November, DuPont is investing more than US$80 million in a new modified engineering plastics production base in Zhangjiagang. It is expected to be operational in 2020 and the expansion will be extended to 2023.