In 2022, China's paste PVC resin will enter a window period from scale growth to quality improvement

1、 Introduction to Paste Resin

Polyvinyl chloride (PVC) paste resin, as the name suggests, is mainly used in the form of a paste, commonly referred to as plasticizer paste, which is a unique liquid form of PVC plastic in the unprocessed state. Paste resin is usually prepared by lotion and micro suspension methods. Due to its fine particle size, polyvinyl chloride paste resin has a texture similar to talc powder and is non flowable. After mixing PVC paste resin with plasticizer, it is stirred to form a stable suspension, which is then made into PVC paste, or PVC plasticizer paste or PVC sol, and it is in this form that people use to process into the final product. During the paste making process, various fillers, diluents, heat stabilizers, foaming agents, and light stabilizers are added according to the needs of different products. The development of the PVC paste resin industry has provided a new type of liquid material that can be transformed into PVC products by heating alone. This kind of liquid material is easy to configure, stable in performance, easy to control, easy to use, excellent in product performance, good in chemical stability, and has certain mechanical strength, easy to stain, etc. Therefore, it is widely used in the production of artificial leather, enamel toys, soft trademarks, wallpaper, paint coatings, foam plastics, etc.

2、 Policy environment analysis

The domestic economy has entered a stage of high-quality development from high-speed development. The domestic industrial policies have increasingly tightened the regulation and restriction measures for industrial development. With the supply side structural reform as the core, with the focus on resolving excess capacity, and with energy conservation and carbon reduction as the guide, a series of policy adjustments have been made, including the elimination of backward capacity, clean production, safety, environmental protection, etc. Since September 2020, the "carbon peak, carbon neutrality" policy, energy conservation and carbon reduction Key policies such as electricity price adjustments have had a significant impact on the industry. In the future, domestic policies will be closely adjusted around high-quality development, and the development of the domestic paste resin industry will enter an important window period from scale growth to quality improvement.

3、 Economic Environment Analysis

The downstream application fields of paste resin products are rich, covering numerous fields of the national economy. They are greatly influenced by the macroeconomic situation, and the industry cycle is basically consistent with the entire macroeconomic operation cycle. China's GDP has shown a continuous upward trend over the years. In 2021, China's GDP has reached 114367 billion yuan, with a year-on-year growth rate of 12.56%.

From the import and export situation of China's PVC industry in 2021, it can be seen that China's PVC is currently in a pattern of oversupply. From the perspective of import and export situation, in 2021, the export volume of polyvinyl chloride in China will be greater than the import volume, and the total import and export volume will mainly be a trade surplus. Data shows that in 2021, China's PVC exports totaled 2.094 million tons, with an export amount of 2.84 billion US dollars; The total import volume is 561000 tons, with an import amount of 880 million US dollars.

4、 Social Environment Analysis

In recent years, there have been many new enterprises entering the PVC paste resin industry in China, resulting in overcapacity in the industry. The profit margins of most enterprises have been squeezed, and the supply of paste resin products in some regions has exceeded demand. From 2016 to 2018, due to the impact of supply side reforms, the price of PVC paste resin increased, and enterprises entered a new round of expansion cycle. With the decline of prices, the production capacity of PVC paste resin decreased in 2019. In 2020, due to sudden public health emergencies, downstream demand surged, driving multiple enterprises to expand production. In 2020, the production capacity rebounded to 1.42 million tons, and the operating rate reached 81%.

5、 Technical Patent Analysis

During the period from 2013 to 2020, the number of PVC patent applications in China continued to increase, but decreased slightly in 2021. The number of patent applications was 21267, a year-on-year decrease of 21.75%. From 2022 to present, the number of patent applications for paste resin in China is 9296. The domestic economy has entered a stage of high-quality development from high-speed development, and the regulatory and restrictive measures of domestic industrial policies on industry development are becoming increasingly strict. The core is supply side structural reform, with a focus on resolving excess production capacity, and energy conservation and carbon reduction as the guide. This includes a series of policy adjustments such as outdated production capacity elimination, clean production, safety, and environmental protection. In the future, domestic policies will be closely adjusted around high-quality development, and the development of the domestic paste resin industry will enter an important window period from scale growth to quality improvement. Opportunities and challenges coexist. To address these challenges, major enterprises need to continuously strengthen their technological research and development, focus on high-end and distinctive products, and enhance their international competitiveness.