2020 is a year of severe challenges for China's recycled plastics industry for several reasons:

1、 Crude oil prices plummeted and the downstream was depressed;

2020 is a year when China's recycled plastics industry is facing severe challenges. With the sharp decline of crude oil prices, the price difference between new plastic materials and recycled materials is becoming smaller and smaller, and even upside down. Waste plastic enterprises have almost no profit. Crude oil price determines the cost factor of petrochemical industry to a certain extent, and plastic products are no exception. However, plastic products are at the end of the petrochemical industry chain. As products close to end consumers, they are highly sensitive to the economic environment. In addition to being affected by oil prices, their prices also have a very important relationship with the prosperity of downstream industries.

Two, COVID-19

Due to the downtown pressure on the economy of COVID-19, the downward pressure on the economy has increased, the market of plastics raw materials has fluctuated greatly, and the waste plastics recycling industry has been hit hard.

3、 Environmental storm and policies related to plastic restriction and reduction

At the same time, affected by the environmental storm in 2017-2019 and the "waste prohibition order", many "small, scattered, disorderly and dirty" waste plastic recycling and recycling enterprises in China's recycled plastic industry have been closed. Most of the enterprises in the waste plastic recycling regulations are in the state of shutdown and semi shutdown, and the regulations related to waste plastic environmental protection are becoming more and more strict and sound, Industry access guides the standardization, automation and greening of the industry. Governments of various countries attach great importance to and successively issue relevant policies on plastic restriction and reduction, limit the consumption of disposable plastic products and promote the recycling of waste plastics.

"Survival" status of enterprises in China's recycled plastics industry in 2020

In 2020, the operation rate of foreign production enterprises was significantly reduced by the influence of COVID-19 worldwide. The total amount of waste plastics recovered from industrial waste recovery was significantly reduced, and the price of international shipping doubled. Many unfavorable factors brought about a blow to the global waste plastics industry, but under the strong driving force of the construction of waste free city and the sorting and disposal of waste resources. China's domestic recycled plastics industry is growing against the trend.

There is a general trend of "old and new" in the whole industry, and a number of new enterprises have emerged. The total number of formal enterprises in domestic recycled plastics industry has increased rather than decreased.

According to incomplete statistics of tianyancha data, up to now, there are more than 60000 existing enterprises related to plastic recycling in China. In the past five years, the number of new registrations of relevant enterprises has reached 45000.

From January to may 2020, 7118 enterprises related to plastic recycling were newly registered in China, of which the largest was in April, with a total of 2232 related enterprises registered, an increase of 36.4% month on month.

In the same period last year (January to may 2019), the number of new registrations of relevant enterprises was 5895. Compared with last year, the number of registrations of enterprises related to plastic recycling in China in the first five months of this year increased by 20.7% year-on-year.

Among them, a considerable number of enterprises have been transferred to Southeast Asia, Japan and South Korea, Europe and the United States to build factories. China's recycled plastics industry is gradually changing from the traditional mode of "global waste plastics resources + domestic recycled processing" to the dual drive mode of "overseas waste plastics resources + overseas recycled processing" and domestic waste plastics recycling, The global influence of China's recycled plastics industry has increased rather than decreased, and has truly become the backbone of the global recycling of waste plastics.

China's plastic recycling industry has entered the era of survival of the fittest

With the scientific and deepening of industry governance, the threshold of China's plastic recycling industry has increased, large-scale competition has intensified, and the competition has also penetrated into medium and high-end fields, with great development potential in the future.

China's waste plastics recycling and processing enterprises, especially large enterprises, quickly adjust their industrial layout, and make every effort to promote the construction of China's waste plastics industry recycling system and recycled plastics industrial park in combination with domestic new trends such as "waste classification and resource treatment" and "waste free city construction". In the past two years, China's recycled plastics industry has attracted the keen attention of large capital and enterprises. A number of central enterprises, state-owned enterprises, some listed companies with environmental protection concepts and leading renewable resources enterprises that rely on waste steel and scrap metal have arranged waste plastics recycling and recycling processing industries one after another. The recycled plastics industry has entered the rise of leading enterprises A new competitive era of survival of the fittest in the differentiated development of small and medium-sized enterprises.

From the perspective of recycling system, in the future, China's plastic recycling will be forced to improve the recycling system through consumers, production enterprises and policies. Creating a production and marketing supervision chain of green plastic recycling is the inevitable trend of the development of China's plastic recycling industry, and the "green recycling" system of waste plastics will be the main direction of industry investment in the future.