Ban bankrupts China’s biggest plastic bag maker

01 February 2008 15:19  [Source: ICIS news]

SHANGHAI (ICIS news)--China’s largest shopping bag maker Henan Huaqiang Plastic is going into liquidation as a result of the ban on plastic bags thinner than 0.025mm, it said on Friday.

 

On 21 January, we shut down all units to avoid further losses, said a company source.  

 

Huaqiang Plastic accounted for about 20% of China’s plastic shopping bag market and was its main product but orders were badly hit after the government ban, which comes into effect on 1 June, was announced on 8 January.

 

“We have contracts with SECCO, PetroChina and Sinopec to purchase about 2,300 tonnes of virgin high density polyethylene (HDPE) each month,” a purchaser from the company said.

 

PE players said the closure of Huaqiang was already having an obvious influence on the resin market, especially the HDPE film market, alleviating tight supply.  

  

Prices of HDPE film had dropped yuan (CNY) 100/tonne ($14/tonne) this week on abundant supply and weak demand, said a trader.

By: Apple Tan
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