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Environmental Protection, Trade War Double Pressure Masterbatch Industry
- Nov 12, 2018 -

From October 17th to 18th, the 2018 National Plastics Coloring and Masterbatch Academic Technology and Trade Information Exchange Conference was held in Nanning, Guangxi. Participants said that under the dual pressures of trade warfare and environmental protection, masterbatch enterprises also need to improve R&D efforts and security levels, and narrow the gap with multinational companies.

Qiao Hui, Secretary General of the Masterbatch Committee of China Dyestuff Industry Association, introduced that in 2017, the output of masterbatch in China will reach 1.5 million tons, and the enterprises with an output value of over 100 million yuan will further increase. The intensive and large-scale development will be effective and innovative. There has also been improvement, and product diversification and multi-functionality have made significant progress. However, in general, the concentration of domestic masterbatch enterprises is still low, the scale is small, and the low-end products are surplus, the high-end products are scarce, and the overall pattern of insufficient technological innovation has not changed fundamentally.

Qiao Hui said that according to a survey of more than 50 masterbatch enterprises in the industry in 2018, 16 annual output values exceeded 100 million yuan. The total output of these 16 companies was 337,000 tons and the output value was 4.58 billion yuan. Among them, the annual output of Suzhou Baolidi, Guangdong Meilian and Changzhou Hongmei exceeds 30,000 tons, and the annual output value exceeds 400 million yuan. However, during the same period, the total output of the United States color matching company reached 500,000 tons, with an output value of 6.3 billion yuan. The proportion of high-end and functional masterbatch in the products is also higher than that of domestic enterprises. From the perspective of large-scale and high-end processes, domestic companies still have a long way to go.

At the same time, stricter environmental protection and Sino-US trade friction have brought new challenges to masterbatch companies. As the masterbatch industry is listed in the chemical industry rather than the plastics processing industry, some of the industry players have recently stopped production.

Tian Liming, vice president of the China Dyestuff Industry Association, said that although the masterbatch products are not directly included in the tax increase list, some organic dyes, pigments and auxiliaries upstream of the masterbatch, as well as downstream plastic products, have Partially included in the list of tax increases between China and the United States. In terms of international trade, the United States is the largest exporter of Chinese masterbatch, with exports accounting for 14% to 15%, and there is no viable alternative market. Therefore, trade friction will inevitably affect the profitability of the domestic masterbatch industry in the later period.

"Under the challenges of the series, the masterbatch industry only has a way to cultivate internal strength." Qiao Hui said that enterprises should start from a safe and environmentally friendly environment and establish a sustainable production environment for enterprises; from technological innovation, develop high-quality products, conform to plastics, Developments in chemical fiber and elastomers.

Tian Liming also said that he hopes that the masterbatch industry will enhance its competitiveness and open up new markets through transformation and upgrading. The Dyestuff Association has cooperated with pesticides and other industries to apply to the relevant state departments for support in export tax rebates.