Following the outbreak of the financial crisis in the US in 2008, major stock markets collapsed globally and oil prices fluctuated widely. As a result, real economy slowed growth and came into recession. Major economies led by EU and the US took initiatives to make market rescue plans including financial and currency policies to fine-tune and stimulate an economic recovery. With the year’s stimulus plans and other measures, the global economic indices are rebounding, reflecting that the global economy is coming back from bearishness.
China suffered a slow economic growth too on the back of the global economic recession. Prices of domestic commodities lost over 50% or even 80% within 3-4 months on heels of oil prices’ plunge from the highest of $147/bbl. Export business and foreign investment as one of the traditional economic backbone industries decreased dramatically. For example, exporting of domestic plastic products was largely hampered by weak overseas demand. Some plastic product manufacturers in Pearl River Delta where export business plays a decisive role in the economy were confronted with capital chain ruptures and as a response they downsized or even closed down.
Chinese government implemented a series of market rescue plans including financial policies and currency policies to expand internal demand and promote domestic market development. The most highlighted is a CNY4000 billion market rescue plan issued in November 2008. The plan is aimed to perk demand in real-estate, automobile and home appliances up. Official data indicated that Chinese economy bounded back in the first half of 2009 and GDP growth marched toward 8%, but we must see that Chinese economy still has inflation risks as the present economic growth is mainly bolstered by new policies and input of a large amount of capital. But there are many uncertain factors such as extremely surplus capacity of some industries, unreasonable industrial structure and still weak domestic terminal demand. Foreign countries’ protectionist measures such as anti-dumping against Chinese products make exporting more difficult. Accordingly, how to lift added value of products for export, upgrade technology and develop high-end products becomes an impendent question for various industries.
China is a large plastic producer globally. For a plastic manufacturer in China, you shall think of how to change the industry from an extensive processing industry to a high added value industry with more IPRs so as to make the plastic industry enjoy a fantastic development in the plastic industry. When terminal demand is yet to recover, how will petrochemical and plastic product manufacturing industry find a new balance? Herein, CBI as a professional chemical information service provider has prepared a series of plastics derivatives market report 2009. With objective facts and data, we help you probe into the status and hot issues of various plastic derivatives and relationship of products along the production chain so as to find out solutions to problems and give suggestions. Hope you can feel the market pulse and gain new business opportunities.