Recently, the reporter learned from the China Plastics Processing Industry Association (hereinafter referred to as the "China Plastics Association") that in 2023, the plastic product industry in China completed a total output of 74.885 million tons, a year-on-year increase of 3.0%. "The industry as a whole is developing towards the" Five Modernizations "innovation direction of functionalization, lightweighting, precision, ecology, and intelligence, with continuous improvement in capacity utilization and accelerated digital transformation. Wang Zhanjie, Chairman of the China Plastics Association, analyzed that in line with the overall economic development characteristics of seeking progress while maintaining stability, promoting stability through progress, and breaking through first, China's plastic processing industry is showing a steady and gradual development trend. The market size of China's plastic processing industry will remain stable and good, and the production and consumption of plastic products will maintain relatively steady growth.".

Production meets expectations, and the target industry is gradually recovering

According to data from the National Bureau of Statistics, in 2023, the plastic products industry in China completed a total output of 74.885 million tons, a year-on-year increase of 3.0%, and there is still potential for growth. In 2023, the Ministry of Industry and Information Technology and other three departments jointly issued the "Work Plan for Stable Growth of Light Industry (2023-2024)", which proposed an average growth rate of about 4% in the added value of young industries from 2023 to 2024, and the scale of operating revenue of enterprises above designated size exceeded 25 trillion yuan.

Wang Zhanjie stated that as one of the pillar industries of China's light industry, the year-on-year growth rate of plastic processing industry in 2023 closely follows the average growth rate of added value of light industry, which basically meets the expected goals. With the support and guidance of national policies and the increasing demand from downstream industries, the plastic industry will continue to maintain stable growth. It is worth noting that as the entire industry is still in an upward stage, facing various potential adjustments, it is necessary to accelerate the optimization of industrial structure, strive for innovation, seize the "window period" of transformation and upgrading, and promote green and sustainable development.

It is understood that in 2023, in the context of the need to strengthen the endogenous driving force of the domestic economy and weak market demand, the main business income of enterprises above a certain scale in the national plastic products industry decreased by 1.7% year-on-year, and the operating costs associated with it also showed a year-on-year decline trend. However, thanks to the technological innovation and industrial upgrading in production processes in the plastic industry in recent years, the production efficiency per unit of working time has been continuously improved, as well as better cost control and other factors, especially the relatively stable raw material prices, which ensure the relative stability of operating income and profit margins. Since the beginning of 2023, with the gradual recovery of the industry, the cumulative total profit that has been in a negative growth state has also been narrowing month by month compared to the same period last year, providing a favorable premise for turning from negative to positive in the coming year.

In terms of exports, according to data from the General Administration of Customs, external demand remained sluggish in 2023, and the annual export growth rate of plastic products changed from positive to negative for the first time in six years. According to Wang Zhanjie's analysis, even so, the total export value of plastic products in China in 2023 still reached 93.5% of that in 2022, and with the continuous improvement of industry competitiveness in the international market, the export value is still at a high level.

The long-term development of positive fundamentals will become increasingly stable

Wang Zhanjie candidly stated that there are still difficulties and problems in China's plastic processing industry, such as weakened expectations of demand contraction, compressed industry profits, insufficient optimization of industrial structure, severe internal competition in the industry, weak technological innovation ability, weak overall competitiveness of the industry, sustained sluggish international market, and increasingly severe export situation.

How to overcome difficulties and solve problems? Wang Zhanjie suggested seizing development opportunities and adhering to the principle of seeking progress through stability. He stated that relying on the gradual recovery and long-term improvement of China's economy, the accumulation of positive factors in the domestic market will provide strong support for the steady development of the industry, and the prospect of achieving high-quality and sustainable development in the plastic processing industry remains unchanged. In this regard, plastic processing industry enterprises should strive for practicality, adhere to deepening supply side structural reform, always pay attention to demand side management, strive to be led by innovation, continuously enhance core competitiveness, especially in key technologies, core technologies, etc., dare to tackle difficulties and explore, accelerate the high-end development of core advantage products, and achieve stability and progress.

Wang Zhanjie also suggested that the industry should adhere to innovation leadership, improve quality, reduce costs, and increase efficiency, increase product research and development efforts, break through the market with innovative and differentiated new products, explore more market application scenarios through new material research and development, and meet more diversified functional needs. Industry enterprises need to strengthen quality management, technological innovation, and talent cultivation, continuously improve product quality, reduce production costs, and improve production efficiency, in order to achieve sustainable development and long-term profitability. The industry should practice green concepts and seize development opportunities. Industry enterprises should seize development opportunities and provide key support in achieving the "dual carbon" goals and promoting the green transformation of the entire society's industries. They should continuously promote the research and development of recyclable, recyclable, and biodegradable alternative materials and products, thereby promoting the green and low-carbon development of the industry. The industry also needs to strengthen its international competitiveness and change its marketing model. Industry enterprises need to continue to focus on new technologies, new materials and other cutting-edge areas, enhance international exchanges and cooperation, strengthen their product competitiveness and technological advantages, jump out of the inherent operating model, and use new and efficient communication methods on the Internet, such as relying on cloud business platforms, short videos and other support to build brand images, promote product publicity and marketing.

"As one of the pillar industries of China's light industry, the plastic processing industry accounts for more than 10% of the total output value, total assets, employees, exports, and other indicators. In 2024, it is expected that the country and governments at all levels will introduce a series of combined policies to expand effective investment, boost market confidence, promote industry growth, and stabilize foreign trade development. The long-term positive fundamentals of China's plastic processing industry will not only remain unchanged, but will also become more stable." Wang Zhanjie said that given the high correlation between industry development and national economic development, it is expected that China's plastic processing industry will achieve a more stable start in the first quarter of this year. With the cyclical adjustment of the industry, the growth rate of the industry may significantly accelerate from the second quarter onwards. With the increase of the base, the growth rate of the industry from March to April may increase significantly. The quarterly growth rate is expected to decline compared to the second quarter, But it is expected to continue to maintain a steady growth trend throughout the year. "We should have more firm confidence in the high-quality and sustainable development of China's plastic processing industry," he said.