At the same time, some large domestic plastic production projects are also being built in intensive production. Last year, the fujian refining capacity of 400000 tons of polyethylene, polypropylene, tianjin ethylene linear low density polyethylene plant, annual output of 300000 tons of dushanzi petrochemical 300000 tons of annual output of 300000 tons of high density polyethylene, linear low density polyethylene and other devices have been put into production, and will be put into production in 2010 of zhenhai refining projects, such as two years, China's petrochemical industry will be the new plastic raw material production capacity of 5.6 million tons, 38% increase.

The influence of coal chemical industry on plastics raw materials industry also gradually appeared. By the end of 2010, three to four coal chemical projects will be put into operation, and the new annual production capacity will be 300,000 tons and polypropylene 1.3 million tons. As the oil price rises, the coal-making olefin and polymer have a certain cost advantage, causing certain pressure on the market.

And as the economy picks up and market demand is expected to rise, the domestic production of plastic materials that are now in idle or semi-discontinued production will resume production or increase the rate of production. Increasing with the rapid expansion of production capacity, output and an influx of imported raw materials, plastic raw materials market is bound by a seller's market to buyer's market, market competition intensity can imagine.

To sum up, although domestic demand has increased, but the influx of imports and domestic production capacity of concentrated release will form the resources boom, 2010 plastic raw materials industry gross margin to optimistic. On the other hand, crude oil and ethylene prices play an important role in the price movement of plastic raw materials. Based on expectations of continued improvement in the United States and the world economy, the U.S. energy information administration believe that economic recovery will make global oil consumption began to rebound, and take to the monthly average price of crude oil rises to $81 a barrel this year. The rise in oil prices is bound to lead to higher prices for ethylene and the price of plastic materials. Although in the short term price space is limited, but the long term, as crude oil, ethylene costs rise gradually, PE plastic raw materials such as strengthening again day not far away, in 2010 as a whole will keep rising trend. For that, karma? Products with high added value and high quality adapt to market demand.