Automotive plastics demand growth will continue for 5 years

According to a report released recently by a market research company, the demand for automotive plastics in China has experienced rapid growth over the past 10 years, and it is expected that China's auto plastic production and demand will maintain a relatively high growth rate in the next five years. The study carefully analyzed China's macroeconomic development trends and investment environment, industrial development status, supply and demand situation, industrial production capacity, industrial structure, marketing methods, etc., and provided historical data for 1994, 1999, and 2004 and the future long-term Forecast of demand.

According to analysis, in the past 20 years, China’s economy has maintained rapid development. The output of industrial products, daily consumer goods, and basic investment have continued to increase. The annual growth rate of GDP is as high as 9.8%, and the increase in industrial output value in the country is as high as 15% per year. It is expected that the economy will increase in the next five years. Will continue to maintain a higher increase. Due to the huge capacity of the Chinese market, there are many opportunities for investment and trade, which has attracted investment from all countries in the world to enter China. China has become the world’s second largest foreign-invested absorption country after the United States. With the continuous development of the economy, the rapid growth of China's auto industry has also activated the growing demand for automotive plastics. Since 1990, the average annual growth rate of China's auto plastics consumption has reached 24.7%, and it is expected that China's demand will continue to grow at an annual rate of 15.4% in the next five years. By 2009, the demand will reach 1.414 million tons.

According to statistics, the demand for automotive plastics in China from 1994 to 2004 increased by an average of 27.8% annually. In recent years, due to the continuous expansion of domestic automobile production capacity, domestic production has continued to increase rapidly. In 2004, domestic production reached 220,000 tons. It is expected that domestic production will reach 500,000 tons in 2009, and the average annual growth rate will be 18%. As domestic production still cannot meet the rapid increase in demand, China will import a large amount of automotive plastics in the next few years. In 2004, the import volume of Chinese auto plastics was 480,000 tons. It is expected that China's imports in 2009 will reach 950,000 tons.

Automotive plastics include polyethylene, polyvinyl chloride, polypropylene, polystyrene, phenolic resins, polyurethanes, acrylics, unsaturated polyesters, acrylonitrile-butadiene-styrene (ABS) copolymers, and engineering plastics. At present, there are more than 1,100 automotive plastics production plants in China. The majority of the production plants are small-scale and the annual output is only a few thousand tons. The Chinese government is embarking on the reorganization of the automobile plastics production industry.