Insufficient Demand For Capacity “blowout”? Early Warning Rational Investment In Polycarbonate Industry
May 27, 2019
Polycarbonate capacity will show spurt growth in the next few years, and the market is about to suffer. At the 2nd China Polycarbonate Industry Innovation and Development Forum held on May 8~9, the China Synthetic Resin Association Polycarbonate Branch released the "2019 China Polycarbonate Industry Survey Report", which proposed the benign development of the industry. Suggestions.
According to Duan Qingsheng, Secretary General of the Polycarbonate Branch of the China Synthetic Resin Supply and Marketing Association, China has now developed into the world's largest polycarbonate producer. In the past five years, domestic polycarbonate production capacity has grown rapidly, from 610,000 tons in 2014 to 1.205 million tons in 2018, with an average annual growth rate of 18.6%; consumption increased from 1.53 million tons in 2014 to 2018. The 1.84 million tons, with an average annual growth rate of less than 5%, eased the situation that polycarbonate relies heavily on imports.
“In the next few years, China's polycarbonate production capacity will show a spurt growth. It is expected that domestic polycarbonate production capacity will reach 3.52 million tons per year by 2022. However, domestic polycarbonate production capacity growth rate and demand growth rate are not correct. Etc., a large number of repeated construction will inevitably lead to a serious overcapacity of the industry's overall production capacity, resulting in waste of investment and thin profits, and even losses." Zheng Wei, president of China Synthetic Resin Supply and Marketing Association, said that special attention should be paid to the current high quality and special performance. In the field of polycarbonate, it is still the world of a few foreign-funded enterprises with strong technical strength, and domestic enterprises have yet to make significant breakthroughs.
In this regard, the "2019 China Polycarbonate Industry Survey Report" issued this time issued the following five recommendations:
First, strengthen macro guidance, from the national level, local government level to industry organizations to jointly issue warnings to the market, so that the entire industry recognizes the real situation of industrial development and rational investment.
The second is to improve the industry guidance catalogue. I hope that the polycarbonate synthesis technology can be removed from the encouraged development catalogue from the Development and Reform Commission and the Ministry of Commerce's Foreign Investment Guidance Catalogue, and the feasibility of appropriately increasing the industry entry threshold can be studied.
The third is to encourage the development of medium and high-end polycarbonate products, strengthen the ability of domestic enterprises to independently research and develop and produce high-end products, and to some extent fill the structural shortage of high-end products.
Fourth, we will pay more attention to the total amount and amount of imported products, and consider in advance the damage caused by possible dumping to the domestic industry. If necessary, we may consider launching anti-dumping measures against products that impact the market.
The fifth is to strengthen the import control of unqualified waste plastics and promote the healthy development of qualified products.
In addition, Duan Qingsheng also said that under the existing policy system, how to achieve the coordinated operation of relevant authorities, from the national level to the local, and then to the financial support department, to avoid the inefficient operation and waste of social resources, is also the need of many domestic industries. The fundamental problem to be solved requires research and exploration.
