Industry Overview
| Year/Total | 2004 | 2005 | 2006 |
| Total Exports | 11,673.4 | 16,076.3 | 20,246.4 |
| Total Imports | 24,285.6 | 28,989.4 | 31,796.4 |
| Total Imports from the U.S. | 2,135.6 | 2,599.6 | 2,820.3 |
The above figures are calculated in US$ millions (1,000,000's)
In the tenth-five year plan (2001-2005), the annual growth rate of general synthetic resins was 6.8% and engineering plastics materials was 10%. However, the local output of plastics materials and resins can only satisfy 50% of market demand. As a result, China must import large quantities of plastics materials each year.
The local market requires imports of general-purpose thermoplastic resins, including polyethylene (LDPE and HDPE), polypropylene (PP), polystyrene (PS), acrylonitrile butadiene styrene (ABS), and polyvinyl chloride (PVC). This market is subject to fluctuation of up-stream supply and down-stream market demand.
In 2006, plastics and plastic products ranked as China’s 5th largest import category (Harmonized Schedule 2-digit level) from the United States, with a total value of 2,800 million USD. The top 4 Chinese plastic imports are polypropylene, styrene, polyethylene, and polycarbonate. U.S. plastics exports to China grew at an average rate of 15% over the past 5 years as China's accession to the WTO provided significant benefits to U.S. plastics and resins exporters.
China's accession to the WTO has provided significant benefits to U.S. plastics and resins exporters. Specifically, the average rate has been reduced to a final average rate of 10%. In 2007, import tariffs on all PP will be lowered from 8.6% to 7.6%. Most quotas will be eliminated on virtually all chemical products upon accession. China has also agreed that any entity will be permitted to import most products, including plastics and resins, into China after a three-year phase-in period. U.S. companies operating in China will also be able to freely distribute plastics materials in China.
According to a manager from Chemical Markets Associates Inc., demand for PE in North East Asia (including China) will grow 7% annually from 2005 to 2015. However, the local output of plastics materials and resins in China can only satisfy 50% of market demand. As a result, China must import large quantities of plastics materials each year.
Government development policies will also stimulate demand for plastics and resins. For example, the State has commanded that by 2015, the amount of plastic used in piping be increased from 50% to 70%, the amount using in doors and windows materials be increased from 25% to 40%, and the amount in roofing materials be increased from 50% to 80%.
Special engineering plastics and other resins that possess special physical and chemical properties, are used widely in various industries. U.S. engineering plastics products have high-technology input and are very competitive in the local market. However, U.S. firms now face stiff competition from Japan, Korea and Taiwan, German. In recent years, imports of general plastics from the U.S. dropped sharply due to price competition and the close relationship between Asian competitors and China. Meanwhile, China has become the largest importer of engineering plastics in the last three successive years. Up to 2005, the demand for the five major engineering plastics (PC, POM, PA, PBT and PPO) and ABS will increase to 590,000 t/a and 1.6mt/a.
China needs to import large amounts of synthetic resins to meet local market demand. In 2006 for the January to November period, China’s imports of general plastic products totalled USD 34.1 billion, an increase of 12.4% from the previous period. Imports from the United States represented 8.26% of the total, just behind Taiwan, Korea, and Japan. China’s imports of PVC reached a value of USD 1.4 billion in 2006, a decrease of 9.4% over 2005. Meanwhile, China has become the largest importer of engineering plastics in the last three successive years.
Due to rapidly expanding production capabilities, PVC supplies have overtaken demand. China’s imports of PVC have also been decreasing by 10% a year since 2004. In 2006, government’s tightening macroeconomic policy has hit the realestate industry, decreasing construction demand for PVC. This trend is likely to continue into 2007, where macro policies on environmental and energy issues will also influence the PVC market.
Chinese Import and Export of plastic raw materials with U.S. (in millions of USD)
| Year | Import | Export |
| 2006 | 1460.586774 | 126 |
| 2005 | 1854.478945 | 350 |
| 2004 | 1917.572074 | 318 |
Resource: China Customs, World Trade Atlas
Useful Websites
http://www.chinaplastics.com.cn
China Plastics Processing Industry Association
http://www.plast-ind.com.cn
China Engineering Plastics Industry Association
http://www.cheminfo.gov.cn
China Chemical Information Center
Key Industry Contacts
China Engineering Plastics Industry Association
Add: Chengfu St., Haidian Dist., Beijing 100084
Tel: (86-10) 6264-5867
Fax: (86-10) 6252-5392
China Plastics Processing Industry Association
Add: No.6, Dong Chang'an Str. Beijing 100740
Tel: (86-10) 6526-7869
Fax: (86-10) 6527-8590
China Plastics Processing Industry Information Center
Add: No.11 Fu Cheng Lu, Beijing 100047
Tel: (86-10) 6898-2150
Fax: (86-10) 6890-5546
Major Shows/Exhibitions
CHINAPLAS 2007, May 21-24 , Guangzhou
U.S. Commercial Service Contact Information in China
Beijing Office:
Tel: (86-10)8529-6655
Fax: (86-10)8529-6558/9
David Murphy
Wang Ling
Shanghai Office:
Tel: (86-21)6279-7930
Fax: (86-21)6279-7639
Kevin
Chamber
Vivien Bao
Guangzhou Office:
Tel: (86-20)8667-4011
Fax: (86-20)8666-6409
Li Shuquan
Chengdu Office:
Tel: (86-28)8558-3992
Fax: (86-28)8558-3991
Chen Ling
Shenyang Office:
Tel: (86-24)2322-311980*8142
Fax: (86-24)2322-32206 Liu
Yang
or