A trade war with China - China will aim at the plastic and silicone industry

by:Cupidove     2020-09-10

plastic professionals often plaint in the United States, many outsiders don't know the impact of plastics on the daily life. Plastic material from the beginning of the 19th century it has become the norm, silicone rubber at the end of the nineteenth century became the commonly used materials, silica gel products now in recent years the global demand for completely beyond the expected amount, according to the small make up that has a trade war with China, will China all-round aimed at the rubber and plastic industry!

according to the events of the past two weeks, we can say that - China - The earth's most populous country - - Really understand the plastic market in the United States. The plastic enterprise executives may now think, neglected isn't so bad.

on April 4th, China's 106 U. S. goods tariffs, to the United States against China made back in the second round of duties. To some plastic market observers feel surprise, more than 40 of these goods is related to the plastics industry.

Chinese officials took aim at the plastic material, engineering resins from polyvinyl chloride (PVC) and polyethylene to nylon, polycarbonate and even covers the polysulfone such high-end special resin.

in other aspects related to plastic, the us tax listing covers a long list of industrial products, including mold, injection molding machine, extrusion machine, blow molding machine and hot molding equipment.

based on the value of the dollar in 2017, plastic fourth ranked in the tariffs in China market, second only to the plane, soybean and cars.

market analyst Paul Bjacek said: 'China basically look chose the type of polymer, and the value of the trade deficit ( Is not necessarily the volume) In the United States is the highest. This means that the high value of polymer is inevitable is not affected by the customs. In this way, engineering polymer relative to some common plastic has high value of trade balance. '

shale gas began to play a role, this kind of raw materials led the United States ( Mainly in the gulf of Mexico coast) Large-scale expansion of PE resin. Most of this new material is expected to be exported, among them, China is seen as a major destination.

there are data show that U. S. exports to China in 2017, more than 500 million pounds of PE, is expected in 2018 and continues to grow in the future. And the number of PVC from U. S. exports to China ( About 700 million pounds) Similar to PE quantity of PVC imports about 40% of all Chinese.

due to optical media products such as CDS and DVDS have decreased in domestic production, China has also become an important market of PC resin manufacturers. America's PC production currently exports accounted for about 40% of the domestic PC production total value.

IHSMarkit market analyst Paul Blanchard in Houston, said: 'as a result, the United States exports may bring some pressure to China, China needs to find alternative suppliers of the PC resin and nylon tree fat. '

in nylon 6/6, he added:' northeast Asia seems to have the ability to instead. However, if the two nitrile raw material was included in the list of tariffs on China, which will complicate the situation of nylon 6/6. '

Robert eller consulting ( Robert Eller Associates) Company President Robert said Mr. Eller, the proposed tariff in China, in China or other Asian countries to establish a business in the United States and Europe resin suppliers and the company's impact will be minimal.

but Mr. Eller said, adding that if you cannot find a market in China, those in the United States have resin and elastomer business of the company may suffer. He said: 'could also be traded between businesses, as emergency measures to avoid the customs problem. '

according to the American chemistry council, ACC) Data, China is one of the most important trade partner of the American chemical industry. ACC chairman CalDooley said, ACC on distribution of China's new tariffs of particular concern for 40% of the chemicals in the products, including polyethylene, PVC, polycarbonate and acrylic ester, etc.

he added: 'nearly $185 billion of new chemical plant, expansion and restart facilities are based on the current tariff plan, and caused by the tariff increase market changes may prompt investors to do business in other areas.

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