Plastic products have pushed China's trade surplus to a record high for 14 years
Plastic products have pushed China's trade surplus to a record high for 14 years
Oil prices are constantly innovating. Resin material is down. So is the price of plastic also falling?
According to today's New York times article, plastic products manufacturers in China have slashed prices, the raw material purchasing the most positive contribution of the consumer, of course include both domestic export market. The report cited the comments by Wuxi Redhot Industries Company, a plastic container maker in Wuxi, saying that competition in the domestic market, coupled with chronic overcapacity, had led producers to compete on price.
In other words, Chinese exports have gained a bigger share of the global market, while imported raw materials have fallen sharply, creating a record trade surplus.
The domestic market also has a representation. On November 27, fuzhou evening news reported, fuzhou more supermarkets and stores to launch comprehensive plastic products sales promotion activity, a lot of plastic basin, crisper, and other products price is only about two-thirds of the past. The authors interviewed the head of a plastic factory in fuzhou, which said the cost of materials for plastic products was the bulk, accounting for 70 to 85 percent of the total cost. The cost of labor is 5%~ 20%, and the cost of design and research is 10%~ 30%.
The plastics industry says almost all raw material prices are falling this year. The cost of plastic has fallen by 13% as oil prices have tumbled. The biggest drop in the spot price of terephthalic acid was 40 percent, while the price of polyethylene fell 17.6 percent. Under the influence, the total cost of the product is reduced by 5%~ 20%.
But raw material prices are not a key factor in the cost of all plastic products.
According to the shenzhen news network on November 7, the impact of labor costs on the industry is far greater than that of raw materials. The impact of artificial rising and hiring difficulties on the toy industry is huge. The report quoted xue xiaowei, director of the toy factory of chengkui baode, saying that materials such as ABS and PVC had a 1-2 percentage point impact on the toy industry.
The report quoted a swipe source plastic products co., LTD., head Yang Daoping speech, said the supply and demand determine prices, with oil down not down relationship is not large, fluctuations in crude oil will not reflected in the PVC this product directly to the end. To this point, I think it needs to be realized that the domestic PVC production relies heavily on coal chemical, not crude oil. The chronic overcapacity in the PVC industry has resulted in a more stable price downturn.
The inflatable toy company said international markets had the worst year of the year from 2008 to 2014. "Toy companies still have to go the high end to get orders from sophisticated customers." I strongly agree that the export price reduction cannot alleviate the slowdown in the domestic economy in the long term, only the real upgrading can be hopeful.
