Anatomy of the guidelines of the 19th National Congress on the plastics industry

First, the report pointed out that socialism with Chinese characteristics has entered a new era, which means that the Chinese nation, which has been suffering since the modern times, has ushered in a stand and ushered in a bright future for the great rejuvenation of the Chinese nation. The 18th National Congress mentioned insisting on going to capacity, destocking, de-leveraging, reducing costs, supplementing short-boards, optimizing the allocation of stock resources, and realizing the dynamic balance between supply and demand. This indicates that the plastics continue to be in a state of de-capacity and low inventory. Looking back at 2017, plastics and petrochemical inventories are normally at around 900,000 tons, but with the continuous control of production capacity, the overall inventory of plastics and petrochemicals maintained a normal level of around 70 this year.

Second, the report proposes the implementation of a regional coordinated development strategy. Intensify measures to promote the formation of a new pattern in the development of the western region, deepen reform and accelerate the revitalization of old industrial bases such as the Northeast, and lead the way to achieve optimal development in the eastern region and establish a more effective regional coordinated development mechanism. In recent years, plastic coal chemical plants have developed rapidly, and most of them are concentrated in the northwestern region. Coal-based polyethylene production capacity accounts for about 23% of the total production capacity. However, due to the strict investigation of environmental protection and the advent of the low-cost oil era, coal-based enterprises continue to expand their markets. The battle for price has also intensified. Especially under the emphasis of “supply-side reform”, the state has restricted the exploitation of coal. In recent years, it has also been committed to environmental protection. Therefore, reducing production capacity, alleviating the contradiction between supply and demand, and accelerating transformation are also new development directions for coal-to-olefins.

Third, accelerate the reform of the ecological civilization system and build a beautiful China. It emphasizes efforts to solve outstanding environmental problems. Looking back at the 2017 national environmental protection severe inspection year, under the vigorous and strict investigation of environmental protection, the downstream factories of plastics were partially shut down and rectified, which had an impact on market demand. However, as the environmental protection deepened the closure of downstream factories, the formation of the chemical industry in the early stage was changed. The low-end competition situation of the cost of fight and the price of the price has made the market more standardized and further consolidated the low position of petrochemical and medium oil.

The report of the 19th National Congress of the Communist Party of China is far-reaching. Under the main line of structural reform on the supply side, under the joint measures of environmental protection and regional coordinated development, the plastic market will usher in a new round of "opportunities" and "challenges"!