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Rubber and plastics market generally warmed up

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I also think that in 2016, the national “three to one, one reduction and one subsidy” policy will be gradually implemented, and the supply-side structural reform effect will appear. Under the influence of de-capacity policies and demand recovery, the downstream rubber and plastics sectors will also be boosted by national policies. The market generally warmed up. According to business monitoring, the 2016 rubber and plastics industry index rose from 583 at the beginning of the year to 850 at the end of the year, an increase of 267 points.
In 2016, the national environmental protection inspection has brought profound impacts to the rubber and plastics industry. A large number of installations have been shut down, especially PVC products. The de-capacity effect of the upstream calcium carbide industry is obvious, and the price of PVC is rising, with an increase of more than 50%. This made the PVC industry, which has been tepid in recent years, completely ignited in 2016.
Xue Jinlei, a senior analyst at the rubber and plastics branch of the business community, pointed out that coal-based olefins and polyolefins in the rubber and plastics industry can be said to be the highlights of the industry, which not only solves the problem of “overcapacity in the traditional industry” but also “low-end overcapacity cold current”. The coal industry has been able to effectively transform kinetic energy, and has completed the “compensation of shortcomings” in the downstream plastics field. First, it has reduced its dependence on foreign countries. Second, it has improved the dilemma of high cost of crude oil. It can be said that it solves two major problems. Let the traditional industry and resource-based industries renew their vitality. In 2016, the approval of Yitai's 2 million tons coal-to-liquids project and the commissioning of Zhongtian Hechuang's 1.37 million tons of coal-to-olefins project marked the vigorous and orderly advancement of China's coal-to-olefins and other modern coal chemical demonstration projects. The domestic coal-to-polyolefin industry market share has reached a new level.
In the 2017 government work report, the requirements for pollutant emissions should continue to decline. Enterprises that fail to meet the standards in the rubber and plastics industry will continue to form strong constraints, urge enterprises to complete the transformation of the equipment as soon as possible, and accelerate the pace of industrial upgrading. Xue Jinlei believes that 2017 is still a long-term year, and it is expected that the rubber and plastics industry will usher in a new spring in 2017.