Plastics: “Green” Products Take Off

By Shu Li

Slow growth of the plastics sector overall

The plastic processing sector in China maintained slow, stable growth in 2015. Data from the National Bureau of Statistics show that the total output of plastic products in China was 67.895 million tons during January-November 2015, an increase of 0.6% over the same period of the previous year. There was a trend of slow growth.
The output of plastic films in China was 11.946 million tons during January-November 2015, an increase of 3.5%. The output of daily plastic products was 5.319 million tons, an increase of 0.3%. The output of foam plastics was 2.199 million tons, an increase of 14.7%. The total output of plastics in primary form was 70.118 million tons during January-November 2015, an increase of 10.5% over the same period of the previous year.
The amount of plastic products exported from China was 8.79 million tons during January-November 2015, an increase of 1.6% over the same period of the previous year. The export value was RMB211.1 billion, an increase of 2.5%. The export volume of plastic products was 790 kt in November, equal to that in the previous month.
The amount of plastics imported in primary form to China was 23.79 million tons during January-November 2015, an increase of 3.0% over the same period of the previous year. The import value was RMB255.35 billion, a drop of 11.9%. The import volume was 2.10 million tons in November, equal to that in the previous month. The import value was RMB21.62 billion, a slight increase over the previous month.
Despite the slowdown of growth, the plastic processing sector was still stable with advances. Difficulties coexisted with opportunities in the development of the sector.

Golden opportunities for green plastics

1. Bio-based plastic industrial chain is formed

The “Catalogue for Industrial Restructuring”, issued by the National Development and Reform Commission in 2015, encourages the development and application of degradable agricultural films, degradable polymers, degradable materials, biodegradable plastics and their series products, as well as biodegradable fibers.
Developing bio-based plastics and using renewable resources to replace petrochemical resources can help achieve sustainable development of the plastic processing sector, reduce the emission of greenhouse gases, lower the discharge of disposable plastic products and protect the environment. The total output of bio-based materials and products in China has already reached 500 kt a year. Constant breakthroughs are made in key technologies, and product varieties are increasing steadily. Bio-based materials and products have become a focus for investments. Various indexes for performance of bio-based plastics have been upgraded remarkably, some enterprises own intellectual property rights to key technology processes and their products have gained certification in the international community.
Bio-based products – with disposable hotel utensils, disposable table settings, plastic bags and garbage bags in the lead – have established long-term stable supply/demand relationships with hotels, restaurants and supermarkets. Products of some enterprises are sold to overseas markets. Local governments such as Hainan, Jilin and Jiangsu have issued relevant policies to support the development of the biomass plastic sector.
A bio-based materials industrial chain with focus on preparation of biological material monomers, synthesis of bio-based resins, modification and compounding of bio-based resins and application of bio-based materials has already been formed in China.

2. Plastics are used to replace timber

More than 25.0 million tons of plastics in China are used in building construction, decoration, repair and outer wall insulation a year. Consumption is increasing. Remarkable effects have been produced on saving material, minimizing building weight, conserving energy and reducing consumption. Owing to their green and low-carbon features, plastic materials and products, plastic micro foam sheets, profiles and plastic/timber composite materials and products in particular, have been very well received in the market.
The development of plastic/timber composite materials will soon enter the fast track. The National Development and Reform Commission (NDRC) issued a circular in as early as 2011, specifying that during 2011-2015 several plastic/timber composite material industrial bases should be established, and 4-5 plastic/timber composite material equipment manufacturers and 100-150 plastic/timber composite material producers should be fostered. NDRC issued the “Action Plan for Promoting the Production and Application of Green Construction Materials” in 2015, so rapid development of plastic/timber composite materials is promoted. The consumption of plastic/timber composite materials in China has reached over 1.50 million tons a year today. As greater efforts will be made to promote green construction materials, the domestic market share of plastic/timber composite materials will get still higher. The market demand for building templates in China is estimated to be over RMB200 billion. Plastic/timber building templates will hold a market share of 30-50% in the next 3-5 years and the output value can reach over RMB60 billion. The development prospect is extremely bright.

3. Market in water-saving irrigation is opened

Plastic water-saving irrigation devices have already gained nationwide applications in great quantities. The consumption of plastics in this field is around 2.0 million tons a year and the number of producers exceeds 3 000. The development and application of plastic water-saving irrigation devices has played a significant role in the development of agriculture and the increase of crop yield.
Plastic water-saving irrigation devices first developed and used by Xinjiang Tianye Group Co., Ltd. and the under-mulch drip irrigation fertigation technology later developed by the company have made eye-catching achievements in agricultural irrigation in Xinjiang.

4. Green additives promote ecological process

Guided by the global tide of environmental protection, greenness and low-carbon, the application of green environment-friendly additives has gained acceptance in industrial circles of China. Plastic processing enterprises are actively developing “green, environment-friendly, nontoxic, efficient” , low-price and user-acceptable plastic additives. In over 5.0 million tons of plastic additives, such varieties are holding higher and higher shares and have effectively quickened steps in the high-end application and clean processing of plastic products.
During 2016-2020 the plastic processing sector in China faces development opportunities and severe challenges in the transformation of development modes, the optimization and adjustment of structures and the upgrading of industries. The plastic processing sector is in a crucial period of marching toward mid-range and high-end products today. The pressure of economic decline in the sector has increased. Production and operation in enterprises also have many difficulties and problems. New growth points should be cultivated with high-end products as the core to smoothly get through the industrial transformation of the plastic processing sector.