Recycled Plastics Industry’s Future Development Strategy Analysis

    Social progress, the market is to prosper and live better is necessary to develop the economy, economic development, with regularity, and periodicity, about one cycle every decade, from the deflation, the market downturn, the market boom, inflation bubble then the bubble burst resulting financial crisis. Last year’s financial crisis was only the fuse of this economic cycle, even without the U.S. subprime mortgage-induced financial crisis, there are other things to make the bubble burst. However, before this crisis is much greater than on the country out of all walks of life are great, right out of our recycling industry is also great, recycled plastics industry is also subject to a devastating blow, resulting in a loss a career change, the collapse are out there, but these difficulties are temporary.

    Waste Materials Recycling benefits industry, since ancient times been an influential industry for life and production have played a decisive role, it is a natural development of industry. It’s just that people have no awareness of the importance of this industry only. As the shortage of energy and non-living, the state is also increasing emphasis on recycling of materials, materials, production of waste materials has become increasingly dependent high, so that waste materials industry, the healthy development of China as the world’s factory, the products, low prices and the U.S. and by international favor, in order to reduce costs, manufacturers can not do without renewable materials, who left it will not make money or less money. So, people in this industry in recent years relative to scrape eyes to see, but also to the rush to enter the industry point, but also waste plastics operations and the most competitive time, but also close to the madness, because of society’s increased demand for waste plastics, it is awareness-raising of waste plastics, energy shortages, the state and social support, these annual operating waste plastic were also made money, most people with admiration for plastic recycling industry, in the past feel that this industry is a disgraceful industry, now not only do not feel ashamed, on the contrary it was also felt glorious. Because many plastic products can not be separated waste plastic and left to be profitable, the products were not competitive, in recent years into a substantial increase in people in this industry, and now there are a lot of people want to enter this industry, I am often asked in this industry situation.

    Waste plastics industry has reached the point of fierce competition. Waste plastics industry now is the time marginal profit this year, the majority of enterprises are low-profit or flat businesses, operating poorly and losing a lot of people. The next few years of waste plastics industry will face operational difficulties, difficult. Whether domestic or imported waste plastic recycling would be very difficult. Now would be a big waste plastics industry reshuffle of the situation, will be survival of the fittest, not those who quit. Many Hong Kong traders are luckily a lot of last year, and some have done no less than changing to the other, and also some collapse of the. Want to get good returns, some companies will have to restructure, change management strategy to improve profitability and competitiveness. In the future development potential of waste plastics industry to improve profitability and competitiveness, focusing on improving the technical content, improve business strategy, increased specialization, strengthen corporate power and visibility.

    1, to technology-based transformation.

    There technical content of plastic modified plants still admired, still a substantial profit. Some small, simple plant will not meet the current situation, want to continue based on the waste plastic processing, increase profits, you have to have technology and are in the same processing of grain, there are a ton of marketable technologies that make 1000, or even thousands, not technology, made a profit of 100, they might even lose money. Plastic to modification, will improve the performance of plastics, but also to increase its added value. Such as waste for enhanced toughness, increase melting means, lower melting refers to, fire-retardant, conductive plastics modification will improve the performance and value, but also greatly increase profits.

    Some low-value composite materials can be modified, if carried out to improve its performance, the original can not be used so that he can, the price has naturally increased. A lot of composite plastic waste without modification, if so, the performance is poor, and did not have value, as is the improvement of plastic recycling technology, you can not use the original or low-value, after blending modification, by adding solvent phase change rather to increase its value in use. For example PA / PE, PA / PP, PP / PS, PE / PS, PC / ABS, PET / PP, PET / PE, and so forth can be modified to use technology to improve its value.

    The use of separation technology to improve the added value of waste plastics. Separation of a composite material, mixed with broken plastic separation, such as PET / PVC, PS / ABS and so on, these materials is no way to separate the proportion of law, if you can take it separated you big money. Separation there is gravity separation (density), electrostatic separation, flotation separation, solvent separation, spectral separation, etc.

    Second, the merger business.

    Pure waste plastics trade has reached the point where profitable, and it has been difficult to adapt to the pace of development of waste plastics industry and want in this industry in a healthy and steady development, but also a high rate of return, they do strong, big. To do bigger and stronger on its own is often the spirit is willing, a person’s ability is limited, each has his own strengths. If we can get directly from foreign suppliers a second-hand material, and then processed sorting, crushing, granulation, modified. But also to do more of several materials in order to ensure that there are sufficient supply of goods, want to do such a big business rely on one person or a small enterprise the power is not enough, because the piece of cake too, a person can not eat it, eat a lot of going to go up the stomach, to minutes to eat will feel the incense, the United States. A few people use their expertise and strength, from the full set of trade processing business. For example you are familiar with the trade, and some foreign suppliers, he would be management, he would have been processed grain sorting has modified technology, this powerful combination will naturally be able to strengthen and expand the business, but also naturally has a high rate of return .

    Third, professional management

    Waste plastics industry you do not become bigger and stronger it is necessary to take the professional road, only to do special trip to do bigger, in the procurement and sales have also been effective and efficient. If the technical and financial circumstances are not in place to do a few more species, each one will be done, in the sales of the difficulties, but also make money withdrawn from circulation very slowly, causing cash flow problems. So, start with a single species to start, in the procurement and sales will be handy, there will be unexpected gains.

    4, afternoon action

    Last year, the outbreak of the financial crisis, making the oil crash, plastics also fall along with oil, which followed the crash, the panic selling of businesses to make the price of plastic oversold, and then rebounded on the way to the present. Last year, I had predicted in November plastic to rebound this year, March to June, due to the domestic market needs, but also production season, the demand for plastics will increase, prices are subject to recovery in the second half of plastic prices are likely to will further drop. Look at the external Quotes trends, government policies and activities, the international printing press in many countries starting to make liquidity increased from last year to now look at the trend of the stock market, and now the price has generated a new bubble, plastic, or the maintenance of the original trend of the market outlook judgments that were newly settled stages of the high plastic prices, and are here to remind our friends who pay attention to controlling the risk.

    Recommends that companies should be in operation in order to sell production quotas to maintain low inventories, prudent operation, in order to reduce risk. Pay close attention to money withdrawn from circulation, ready to go to the end of autumn is the time to intervene, the end of autumn is probably the bottom of this year, the price of recycled plastics. Due to the financial crisis, people’s incomes are reduced the demand for the product along with reduced production also declined substantially, the demand for plastic parts of the world also significantly reduced, because, due to lower output supply of waste plastics also with a substantial reduction, as well as low-end products, China is a manufacturing power will be a long-term shortage of waste plastic, recycled plastic is still on the market can play a decisive role to play, as long as there is a market would be to use recycled materials, the market more the larger the role of renewable materials downturn, lower corporate profits will use more recycled materials to reduce the cost and therefore the market of renewable materials is still great, so long as well, and allowing risk-averse, waste plastics in this industry is still profitable.

    Of the world economy has not bottomed out, countries in order to deal with the financial crisis to pursue a loose monetary policy and low interest rate policy, Europe and the United States also starting banknote printing machines, making a surplus of currency in circulation, the new bubble has already emerged. This year is not a low price, this fall is a periodic low, this winter may be the bottom of the Chinese economy, next summer, there may be low in the world economy the Ministry. 2010 autumn and fall of 2011 will be the price of recycled plastic bottom

Tagged as: Analysis., Development, future, Industry's, Plastics, Recycled, Strategy