June 2012 Plastics Industry Development Survey

In the past few days, the plastics industry has been in a sluggish market and deserted. Many people think that the plastics industry is taking a downswing. In fact, this is not the case. Guo Yongxin, an expert on light industry in China, pointed out that although there are some unfavorable factors in the development of the plastics industry, on the whole, the upward momentum of the plastics industry is still strong, and the upward trend of the plastics industry will not change, except for the growth of the plastics industry. The rate will increase from the previous high growth of 30% to the normal growth of about 10%.

Guo Yongxin stated at the “2012 China Plastics Industry Conference” that the low concentration of scale and the low profitability of the industry are the outstanding problems facing the domestic plastic products industry. According to statistics from the Ministry of Industry and Information Technology, there are currently 95,000 plastics companies in the country, and actual figures may exceed 100,000. At the same time, the average profit margin of the plastic products industry was 5.60%, which was lower than the overall level of 6.23% of the national light industry. He said that as the country's macro-control efforts and density continue to increase, the frequency of fluctuations in the plastics industry will also be faster and faster. Enterprises in the plastics industry must pay attention to the use of the market, and hedging their risks through hedging and other means.