In 2010, China will adhere to the policy of expanding domestic demand, especially consumer demand, continue to encourage home appliances, agricultural machinery, energy-saving products to implement preferential policies, plastic raw materials demand will continue to grow. Taking polyethylene, the main variety of plastic materials, the consumption will reach 16.37 million tons in 2010.

Although the low cost impact of the Middle East will continue, the China - asean free trade area will implement zero tariff and the new production capacity in China will release the three. Dashan & throughout; There will be resistance to rising prices of plastic materials, but the market for plastic materials will remain on the upward trend, supported by the long-term rise of crude oil and the continued growth of the economy along healthy and stable tracks.

The low-cost impact of the Middle East is still there

Due to large plastic raw materials for domestic demand in China, and domestic plastics raw material product varieties and quality unable to participate in international competition, volume is small, so our country belong to a net importer of raw material. In 2010, plastic materials in the Middle East are expected to flood into China, which will impact the domestic plastics raw materials industry.

Chinese engineering plastic association statistics show that in the second half of 2008 to the first half of 2009, despite the financial crisis, the actual demand for raw materials of China plastics processing industry is still up 20% from a year earlier. In contrast, China's production of plastic raw materials is down 20 per cent year on year. The increase in China's plastic market is largely absorbed by imported goods. In 2009, the import volume of plastic raw materials increased sharply. In the first three quarters, it imported 2197.70 thousand tons, an increase of 20.8% year on year. As long as China's import status remains unchanged, the international plastic raw material market will not be able to decline.

There are many reasons for the increase in the import of plastic raw materials, and dumping overseas is one of the main reasons. The global petrochemical industry, including China, has been hit by products from the Middle East since the second half of 2009, as countries in the Middle East use cheap crude to produce petrochemical products. With the raw material to the huge advantage of low-cost competition, polyethylene rapid expansion of production capacity, in the Middle East by 2010 will reach 2010 tons, and its domestic consumption accounts for only 30% ~ 40%, and most will export, mainly exported to the target countries is China. The price of polyethylene in the Middle East is about us $150 per ton, which is something domestic enterprises can't compete with. Compared with polyethylene, the cost advantage of polypropylene and polyvinyl chloride in the Middle East is not obvious, but there will be some growth in production capacity.