What is the future of China's plastic waste market?
Release time:2021-04-14

         Back in 2020, influenced by global outbreak of the new champions league, utilization of foreign production enterprises significantly, mainly industrial waste recycling of waste plastics recycling global volume decreased significantly, together with the international ocean shipping prices doubled, many adverse factors brought blow to the global waste plastics industry, but in the absence of city construction waste and garbage sorting and recycling of driver,However, the industry of recycled plastics in China is showing a trend of growth.

1. China's policy system for recycled plastics has been gradually improved

          In recent years, under the background of the rapid development of the plastic industry, the amount of waste plastic has increased gradually, and people's awareness of environmental protection has gradually improved. In 2019, the amount of waste plastic has been recycled 18.9 million tons, with the recycling rate of 23.09%.In the future, China will carry out harmless disposal of the stock of waste plastic in landfills, which can reach 1 billion tons.However, due to the fact that China's recycled plastics industry does not yet have a special management department, individual enterprises in the industry are small in scale and relatively dispersed, and most of the national policies are guided and planned.Therefore, the policy system of China's recycled plastics industry is in a state of gradual improvement.In 2007, the Ministry of Commerce, the National Development and Reform Commission and other six departments issued the Measures for the Management of Renewable Resources Recovery, encouraging all walks of life to save and sell renewable resources.In 2011, The General Office of the State Council issued the Opinions on establishing a Complete and Advanced Waste Commodity Recovery System.In 2015, the Ministry of Commerce and other five departments issued the Medium and long-term Plan for the Construction of renewable Resources Recovery System (2015-2020), which provided an integrated plan for the establishment of the renewable resources system.In July 2017, The State Council issued the Implementation Plan on Banning The Entry of Foreign Garbage and Promoting the Reform of solid Waste Import Management System, stipulating that by the end of 2017, the import of source of income waste, unsorted waste paper, textile waste, vanadium slag and other varieties shall be prohibited.On November 25, 2020, the Ministry of Ecology and Environment, the Ministry of Commerce, the National Development and Reform Commission and the General Administration of Customs jointly issued the Notice on Matters related to the Comprehensive Ban on the Import of Solid Waste. The Notice states that the import of solid waste in any form is prohibited, effective from January 1, 2021.The notice also stressed that the Ministry of Ecology and Environment stopped accepting and approving applications for import licenses for restricted solid waste that can be used as raw materials;Import licenses for solid wastes of restricted import that can be used as raw materials issued in 2020 shall be used within the period of validity specified in the certificates in 2020, and shall automatically expire after the expiration of the time limit.

2. The output of plastic products fluctuated and the supply structure of waste plastic in China changed

         With the vigorous development of China's plastic products industry, large-scale production and use of plastic products will inevitably be accompanied by a large number of waste plastics.In 2019, the total output of China's plastic products industry was 81.842 million tons, up 35.5% year on year.By the end of 2020, China's production of plastic products reached 76.032 million tons, down 6.4%.In terms of production by province, 31 provinces and cities in China produced plastic products in 2020.In 2020, the top 10 regions in the national plastic products production are Zhejiang province, Guangdong Province, Jiangsu Province, Fujian Province, Anhui Province, Sichuan Province, Hubei Province, Hunan Province, Shandong Province and Chongqing City;Among them, the output of plastic products in Zhejiang province was 12.802 million tons, ranking first in China.The output of plastic products in Guangdong province was 12.749 million tons, ranking second in the country.By region, the production of plastic products in China is mainly concentrated in East China, South China and central China, in which east China's production accounted for 47.8%, south China's output accounted for 19.1%;Central China accounted for 12.9%;Southwest China accounts for 11%.In terms of industry benefits, the production of plastic products in China declined in 2020 due to the double impact of the COVID-19 epidemic and the restriction on plastic products, resulting in a decrease in business revenue.In 2020, the total operating income of plastic products manufacturing enterprises in China was 188.901 billion yuan, a decrease of 18.74 billion yuan or 0.98 percent year-on-year.In 2020, the production of plastic products in China will decline, and the operating income will decrease, but the total growth rate of profit will maintain the growth trend.In terms of economic benefits, in 2020, the total profit of plastic products production enterprises in China reached 121.52 billion yuan, 16.07 billion yuan more than the previous year, an increase of 15.24%.In recent years, the functions of China's plastic products have been effectively improved, the export volume of plastic products has been increasing steadily, and the export situation remains optimistic.In 2020, China's export volume of plastic products reached 85.27 billion US dollars, an increase of 36.96 billion US dollars or 19.6% over the previous year.

3. China's waste plastic recycling volume is gradually increasing

          Since 2013, with the improvement of environmental awareness and the promotion of garbage classification, the amount of waste plastic recycling in China has gradually increased, and the quality of waste plastic recycling has also improved.However, due to China's waste plastic recycling system is still not perfect, market raw material recovery is still retail recycling, raw material supply main body is still small family workshops, this recycling mode has low recycling rate, can not guarantee the sustainable and stable supply of recycled materials and other drawbacks, it is difficult to improve to the level of developed countries.By 2020, China will have 74.1 million tons of discarded plastics, of which only 30 percent will be recycled, 32 percent will be buried, 31 percent will be incinerated and 7 percent will be abandoned.

4. China's imports of waste plastics will be cleared

         Since January 2018, China has banned the import of domestic waste plastics, and the import volume of recycled plastics in 2018 has dropped sharply.According to customs statistics, China imported 51,800 tons of recycled plastics in 2018, down 99.11 percent from 2017.Among them, 12,700 tons of reclaimed PE, 19,900 tons of reclaimed PS, 20,200 tons of reclaimed PVC, 13,600 tons of reclaimed PET, and 23,400 tons of other waste and scraps were imported.On November 25, 2020, the Ministry of Ecology and Environment, the Ministry of Commerce, the National Development and Reform Commission and the General Administration of Customs jointly issued the Notice on Matters Related to the Comprehensive Ban on the Import of Solid Waste, banning the import of solid waste in any form, effective from January 1, 2021.The clearance of waste plastic imports has led to a sharp decline in the supply of waste plastic raw materials in China's recycled plastic industry in recent years. At the same time, coupled with the intensified environmental protection rectification across the country, the market fluctuation of China's recycled plastic industry is large.According to the data, the total supply of recycled plastics in 2019 was 12,620,700 tons, down 20 percent year-on-year.

5. China's recycled plastics market fluctuates greatly

          There are more than 10,000 enterprises engaged in plastic recycling in China, with recycling outlets all over the country and processing sites everywhere. The annual recycling and treatment of waste plastic is over 6 million tons, and a number of large-scale recycled plastic recycling trading markets and processing centers have been formed.It has been developing into a free-market environmental protection industry economy with recycling and processing cluster, market transaction intensification, and completely driven by market demand and price.The recycled plastics industry has provided opportunities for regional economic growth and employment, and made great contributions to resource recycling and environmental protection.Under the influence of national policies, imported waste plastics have been completely disappeared since the middle of 2019.In addition, in recent years, the intensifies of environmental protection in various regions, the production and price of China's recycled plastics market in recent years have shown great fluctuations.

6. China's recycled plastic products are developing in the direction of high quality, multiple varieties and high technology

          With the increasing of people's awareness of environmental protection, the recycling, processing and regeneration of waste plastics have been widely concerned by people.Plastic incineration will produce dioxins and other harmful gases;Landfill plastic is difficult to decompose and will pollute the soil environment.But plastic recycling, not only solves the problem of environmental pollution, but also saves energy consumption, and reduces carbon emissions, so the future of the recycled plastic industry is still promising.At present, recycled plastics have been used in textile, automobile, food and beverage packaging, electronics and other fields.A number of large-scale recycling trading centers and processing centers have been formed in China, mainly distributed in Zhejiang, Jiangsu, Shandong, Hebei, Liaoning and other places.However, waste plastic recycling enterprises in China are still mainly small and medium-sized enterprises, and physical recycling is still the main technology. There is still a lack of good environmental protection disposal and recycling programs and successful cases for low residual value waste plastics such as garbage and waste plastics.Waste plastic recycling is a complex process, with the technical innovation, product and industrial structure adjustment, China's waste plastic recycling products are to high quality, multiple varieties, high technology direction.

7. The green recycling industrial chain of waste plastics is strengthening its weak links and developing rapidly

         In recent years, the country began to actively promote the waste plastic industry standards, waste plastic business development began to prepare for the right track, waste plastic market step by step.In China, waste plastics industry is still in the early stage of eruption. It is predicted that by 2022, the penetration rate of waste plastics will reach more than 20%, and waste plastics will open a rapid growth trend in the future.As a green industry encouraged and advocated by national policies, recycled plastic is also a very important field in the reduction and recycling of a large number of waste plastic solid waste.In 2020, some regions of China began to implement strict garbage classification policies; in 2021, China banned the import of solid waste; in 2021, some regions of China began to strictly implement the "plastic ban", etc. Under the influence of the "plastic restriction", more and more enterprises began to pay attention to the multiple value of recycled plastics.Because of its low price, environmental protection advantages, coupled with the policy boost, from the source to the end, the recycled plastic industry chain is making up the short board, rapid development.For example, the implementation of garbage classification is of positive significance to promote the development of the domestic waste plastic resource recycling industry, and facilitate the establishment and improvement of the domestic plastic closed-loop industry chain.

          It is worth paying attention to that the latest hot spot in the field of waste plastic recycling is the chemical recycling method is becoming a new means to treat waste plastic pollution and give consideration to the recycling of resources.At present, the world's famous petrochemical giants are testing the water and laying out the industry, and the Domestic Sinopec Group is also forming an industry alliance to promote and lay out the waste plastic chemical recycling project. It is expected that in the next five years, the waste plastic chemical recycling project, which is in the wind of investment, will spawn a new market of 100 billion industrial scale.It will play a positive role in promoting plastic pollution control, resource recycling and energy conservation and emission reduction.

           With the future scale, intensification, channel construction and technological innovation, the industrial park, industrialization and scale construction of the recycled plastics industry is the mainstream development trend.At present, China's waste plastic industry is developing to the direction of high technology, information, data and intelligence.At the present stage, technological progress will become the main driving force for development. It is necessary to continue to deepen the integration and linkage of "government, industry, university, research, finance and application", firmly grasp the starting point of technology upgrading, adhere to the development direction of "functional, lightweight, ecological and micro-forming", adhere to the innovation-driven development, and implement the high-end development strategy.China's recycled plastics industry must adhere to the industrial development direction of "resource-saving, environment-friendly and technological innovation", vigorously implement the industrial development strategy of "green, low-carbon, circular and ecological", develop new ecological materials, and constantly improve the utilization level of waste plastics resources by relying on scientific and technological progress.We will comprehensively promote industrial transformation and upgrading and the healthy and sustainable development of the waste plastics market.

Source: Ring plastic horizon

Copyright © 2021 Shenzhen Xinchanglong New Material Research Institute Co., Ltd. All Rights Reserved.    Support:Baten