Synthetic resin consumption will continue to grow.

In the past decade, the domestic synthetic resin production has grown rapidly, with its main three types seeing an increase from 200 million tons to 820 million tons. Consumption has also exceeded 100 million tons, aligning with global trends. Currently, the downstream demand for synthetic resin in China is facing significant opportunities, and domestic consumption will become a major driving force for the growth in the synthetic resin industry. The price of synthetic resin is also affected by changes in the upstream and downstream markets.

"So far, the synthetic resin industry is being influenced by the interplay of supply, imports, and consumption, with a new industrial field being refined, and domestic consumption set to become the driving force for growth." On April 20th, during the Petrochemical Industry Transformation and Development and Futures Market Forum, Zhu Fang, Director of Information and Market at the China Chemical Industry Federation, made the above judgment.

According to information, the five major synthetic resins are polyethylene, polypropylene, polyvinyl chloride, ABS, and polystyrene resins. Looking at the first three varieties listed on the Dalian Commodity Exchange, from 2005 to 2016, the domestic production of synthetic resins grew rapidly, from 200 million tons to 820 million tons. The current consumption has also exceeded 100 million tons, roughly aligning with global trends.

From the consumption of the three major varieties, polyethylene resin is primarily used in packaging products, including films, blow molding, coatings, and rotational molding products; polypropylene resin is mainly used for injection molding and film products; the consumption of polyvinyl chloride resin is dominated by rigid products, with the highest consumption in pipes and pipe fittings.

According to Zhu Fang's analysis, currently, the downstream demand for domestic synthetic resins is facing significant opportunities. Firstly, the rapid growth of the internet and e-commerce is boosting the demand for packaging films. Secondly, the improvement in modern agricultural production is leading to a rapid increase in demand for agricultural films. Thirdly, China is expected to maintain its position as a manufacturing powerhouse for an extended period, with continued export demand for films. Fourthly, the demand for high-end membrane materials will grow rapidly due to new materials and premium consumer goods. Finally, the development of building and engineering substitutes is on the rise.

Zhu Shang also pointed out that market players should continue to monitor upstream and downstream changes to adjust their marketing strategies. Firstly, the uncertainty in oil prices will affect the price of synthetic resins over a long period. Secondly, due to the lightening of raw materials, the structure of ethylene and propylene raw materials has changed, and the usage of light raw materials has increased. Thirdly, low-priced raw materials from the Middle East will impact the domestic market.