Upstream sounds a plastic processing company difficult to parry
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Since the beginning of this year, domestic resin prices have been rising along with international oil prices. Especially since May, the ex-factory prices of products such as polyethylene, polypropylene, polystyrene, aromatics, and synthetic rubber have been raging. At present, the market price of high-pressure polyethylene is over 16,500 yuan/ton, and polypropylene pellets are over 17,200 yuan/ton, which is more than 2,000 yuan/ton higher than that at the beginning of May.
Xi'an Jiemei Woven Bag Factory is the largest plastic weaving enterprise in Xi’an. The privately-owned enterprises’ budgetary considerations and tax benefits due to the placement of disabled people’s employment have enabled the company to grow rapidly in recent years. Now it has become a company with 4 wire drawing machines. Medium-sized plastics processing company of 80 circular looms. “But this year our expansion pace has stopped and production has also dropped significantly. The orders that were taken after yesterday’s price calculation will lose money today due to rising raw material prices. Therefore, we are afraid to accept orders now, and the operating rate is only It can be maintained at about 60%.†Yang Huidong, director of the plant, told reporters.
Shaanxi Jingu Plastic Chemical Co., Ltd. is the largest filler masterbatch production enterprise in Shaanxi Province, with an annual output of more than 3,000 tons of various plastic additives. Today, this company is also difficult to parry the impact of high-priced raw materials. “In the past, we have had more and more major customers with the greatest sense of accomplishment. But now these customers are a headache.†Liu Jian, General Manager of Jingu Company explained that the company's contracts with large customers are generally in the first quarter. The shortest sign is also a one-month sign. Since May, the price of raw materials has continuously risen sharply. Taking 20% ​​polypropylene-filled masterbatch as an example, the polypropylene resin used has risen by more than 2,000 yuan/ton in one month, which is equivalent to an increase in product cost by 400 yuan/ton. The original 500 yuan / ton of calcium powder soared to 900 yuan / ton, plus paraffin wax and other accessories prices, Jingu's tons of product costs increased by 800 yuan. "Usually only sell 2,000 to 3,000 yuan per ton of products, can not always look at the price of 800 yuan? Can rise up to 100 yuan even if the customer gives you a face, and how to do these additional costs? Only his own!" Liu Jian excited Said.
Li Jun, general manager of Xi'an Yihai Industry and Trade Co., Ltd., a distributor of resin products, told reporters that resin prices have been rising in recent years, but each fluctuation is only 50-200 yuan/ton, and most of them fluctuate once a week. However, since May, it has been almost a day's price, sometimes fluctuating as high as 700 to 1,000 yuan/ton.
According to investigations, as plastic processing companies have cut production and stopped production, the market supply of plastic film, plastic wovens, plastic pipes and profiles has been significantly reduced recently, prices have risen, and in the future it may affect other related companies. "But from the perspective of the entire industry, currently large and medium-sized enterprises with strength are still maintaining production. Most of the production companies that have stopped production are small enterprises. This obviously speeds up the process of reshuffling the plastics processing industry and adjusting the industrial structure." Shandong Rixin Chemical Industry Company analysts from Shaanxi Co., Ltd. Haohe Plastic Industry Co., Ltd. and Anhui Conch Profile Co., Ltd. said.