19 April 2012 16:11 [Source: ICIS news]
(recasts throughout for clarity)
SHANGHAI (ICIS)--Downstream producers outside China are avoiding purchasing masterbatch products that are made in the country because the products lack variety and are of poor quality, a company official said on Thursday.
As a result, around 80% of China’s masterbatch production is being consumed by domestic end-users, said Weibo Hu, an assistant manager at China-based masterbatch producer Changzhou Plastic Modification.
Hu was speaking at the sidelines of Chinaplas, a four-day exhibition in Shanghai, China which ends on 21 April.
Chinese masterbatch producers with a production capacity of over 10,000 tonnes/year account for 8% of all masterbatch producers in the country, Hu said.
Changzhou Plastic Modification has a production capacity of 15,000 tonnes/year.
The remaining 92% of masterbatch producers comprise small- and medium-sized companies which do not have the strong research and development capability, and the advanced equipment, of their overseas counterparts, Hu said.
A lack of industrial standards has resulted in poor-quality products made by these small producers, which dominate China’s masterbatch industry, Hu added.
This, in turn, has weighed significantly on Changzhou Plastic Modification’s sales to overseas buyers, Hu said.
In China, masterbatch is used mainly in the plastics film, household appliances and building material industries.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections