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The waste plastics processing industry was once filled with "traps" that made many investors discourage. However, in recent years, with the continuous growth of market demand and the maturity of processing technology, it has gradually turned into an attractive “moneyscape†industry, even dubbed as “the last piece of cake in the field of plastics in Chinaâ€.
Investing 50,000 yuan or 60,000 yuan now in waste plastics processing can make at least 100,000 yuan a year. If it is a processing enterprise with a million yuan investment scale, the one-year profit is not "Arabian Nights". What is hidden behind these huge profits? What are the reasons? The following will open the mystery for readers!
Waste plastic processing, a trap to change the "money scene" of the profits industry
Why "trap" becomes "money scene"
The waste plastic processing industry was once considered by investors as the most "trapped" investment area. The most typical of these are the three major categories of processing of incoming materials, recycling of recycled materials, and technology transfer for the purpose of selling equipment. The main reason for the “trap†is that due to the very low market prices of plastics (new materials) at that time, waste plastics processing technology was not mature, and the quality of recycled pellets was poor, resulting in very little actual market demand, which made many investors Can not make money, and some even lose everything.
After 2003, affected by the rise in international oil prices, the price of plastics (plastics are derivatives of petroleum) rose continuously. Many processing companies that use plastics as raw materials have to switch raw materials from new materials to recycled plastics in order to reduce costs. In order to encourage the recycled plastics industry, the state introduced a number of tax-free policies, making the market demand for recycled plastics begin to flourish. The annual demand has increased from less than 1 million tons in 2000 to more than 20 million tons today. Contact 02826240333 Many early investors who entered the industry also started making money from this time.
The prospects for the waste plastics processing industry have a great correlation with the rise and fall of international oil prices. If the price of oil keeps rising, the prices of new materials will remain high, and the outlook for waste plastics processing industry will be very good, and vice versa. . Judging from the current trend of international oil prices, the waste plastics processing industry will have considerable room for development in the next 5 to 10 years.
Crack profits
1. Low raw material prices, high processing profit margins
The source of waste plastics is very wide. At present, there are three well-known waste plastics distribution centers in China. The first is Wen'an County of Hebei Province, the second is Dongyang Region of Zhejiang Province, and the third is Taizhou Region of Zhejiang Province. The recycling price of waste plastics is about 2,000 yuan/ton, while the market price of recycled pellets is about 6,000 yuan/ton, and the gross profit margin far exceeds other links in the industry.
The market demand for recycled plastics, such as recycled pellets, is increasing at a rate of 9% per annum. It has now exceeded 20 million tons, and currently it can only meet the supply of 40% to 50%. This also includes quality. Very low recycled pellets. The huge market gap has given many processing companies the opportunity to “have a higher price for selling goodsâ€, and it is not surprising that they generate high profits.
3. Poor information channels, fewer industry entrants
Due to the existence of some scams in the field of waste plastics processing in the early days, a considerable number of investors no longer continue to pay attention to the industry. In addition, the industry’s relevance to people’s daily lives is low and information is relatively closed. Therefore, many people do not understand the industry. . With a large market space and few entrants, it is normal for practitioners to make big money.
The practitioner’s business pays attention to the geographical choice
Liu Zhu, senior engineer of the National Plastics Processing Information Center, said that Jiangsu, Zhejiang, Shandong, Guangdong, Hebei and Sichuan provinces are more suitable for small and medium-sized investors to develop waste plastics processing, while the Northeast, Hunan, and Anhui are lagging behind because of the plastics industry. Therefore, it is not suitable for medium and small investors to develop waste plastics processing. For example, Anhui's market capacity is only 20,000 to 300,000 tons. It has already been occupied by some large-scale enterprises. Small and medium investors are hard to enter again.
Have a certain channel
Mr. Li, the boss of a waste plastics processing company in Quanzhou, Fujian, said that the waste plastics processing industry is a “channel is king†industry. If investors do not have a stable waste recycling channel, they will not be able to establish a foothold in the industry. There are three types of recycling channels: one is the national material recycling company; the other is the waste recycling company; and the third is the foreign trade company with import and export rights (the import of waste plastics from abroad must be approved by the state, and the utilization rate of waste plastics is over 80%. , Above, can be allowed to enter the country.
Use of preferential policies
Mr. Li from Qingdao, Shandong Province, has been engaged in the processing of used plastics for six years. He said that the state encourages the development of the recycling of used plastics, and there are certain preferential tax policies. In some regions, enterprises with annual recycling volume of more than 100,000 tons can enjoy preferential treatment, but the local regulations are not the same. Like his company's recovery of 50,000 tons or so can enjoy tax benefits.
To product breakdown
Mr. Chen from Wen'an County, Hebei Province, specializes in the recycling of used plastics. He said that if you want to earn more profits, you have to classify and reprocess it. If you process the recycled pellets, you can't classify them, and the blends have little value and they don't sell. At the same time, there are certain market fluctuations in the waste plastics market. Generally, at the beginning of the year, the middle of the year, and the end of the year, the prices of the products are relatively low and they are not suitable for selling products. At other times, the price of the product is relatively high and it is suitable for shots.
Beware of product backlog
Ms. Wen of Guangdong Province has been engaged in the waste plastics processing industry for five years. She said that the worst taboo product backlog of waste plastics processing is done. The product backlog shows that there is a problem in the local plastics processing market. There may be a saturation of the market, and there may be a large fluctuation in the local raw material market price. In any case, investors need to re-exploit channels, or capital chain breaks will soon appear.
Waste resin is the most profitable
Mr. Jin, a senior debtor of a waste plastics processing company in Taizhou, said that the most profitable waste plastics at present are mainly five kinds of resins, PE, PP, PVC, PS, and ABS. The profits of recycled pellets of these five resins are higher than those of other wastes. Plastics are about 30% higher. Among them, PE and PP are both the best and the most profitable.
Sell ​​to foreign trade companies
China now has 30% of its plastic products exported to foreign countries. Some foreign trade processing companies will specifically purchase some high-quality recycled pellets and mix them with new materials (generally adding 10% to 20% of recycled materials). Product exports, which can reduce the cost of processing companies. Therefore, waste plastic processors can choose foreign trade processing companies such as garbage bags, shopping bags and plastic shoes as target customers.
Imported waste business
Mr. Zhao of Guangzhou stated that in fact, importing used plastics for processing waste is more profitable than domestic waste plastics. The main reason is that the recycled pellets produced are of high quality and can be sold on the market. However, not all kinds of waste can be processed. Imported waste must have a national environmental protection department's permit, otherwise it will be punished by relevant departments. At present, the port cities where imported waste plastics are relatively concentrated are Guangzhou, Ningbo, and Tianjin.
To understand the terminology
Each industry has its own jargon and terminology, and the waste plastic processing industry also has its own terminology. Therefore, when investing in a new bank, investors are advised to go to some professional plastic industry forums to learn some professional terms. These terms are mainly for the very cumbersome chemical molecular formula, and have become a common practice in the industry. Such as polypropylene plastic, then the term will be called "pp". If investors do not understand this, it is difficult to make a business and it may also cause jokes or misunderstandings.
To prepare for the owed funds
Another key link in the field of waste recycled plastics is the accounting period. Under normal circumstances, plastics processing companies will first take three months' worth of goods from waste plastics processing companies, and then settle the payment after three months. This has become a hidden rule in the industry. Therefore, investors who enter the bank should grasp the accounting period and prepare sufficient funds.
Investing 50,000 yuan or 60,000 yuan now in waste plastics processing can make at least 100,000 yuan a year. If it is a processing enterprise with a million yuan investment scale, the one-year profit is not "Arabian Nights". What is hidden behind these huge profits? What are the reasons? The following will open the mystery for readers!
Waste plastic processing, a trap to change the "money scene" of the profits industry
Why "trap" becomes "money scene"
The waste plastic processing industry was once considered by investors as the most "trapped" investment area. The most typical of these are the three major categories of processing of incoming materials, recycling of recycled materials, and technology transfer for the purpose of selling equipment. The main reason for the “trap†is that due to the very low market prices of plastics (new materials) at that time, waste plastics processing technology was not mature, and the quality of recycled pellets was poor, resulting in very little actual market demand, which made many investors Can not make money, and some even lose everything.
After 2003, affected by the rise in international oil prices, the price of plastics (plastics are derivatives of petroleum) rose continuously. Many processing companies that use plastics as raw materials have to switch raw materials from new materials to recycled plastics in order to reduce costs. In order to encourage the recycled plastics industry, the state introduced a number of tax-free policies, making the market demand for recycled plastics begin to flourish. The annual demand has increased from less than 1 million tons in 2000 to more than 20 million tons today. Contact 02826240333 Many early investors who entered the industry also started making money from this time.
The prospects for the waste plastics processing industry have a great correlation with the rise and fall of international oil prices. If the price of oil keeps rising, the prices of new materials will remain high, and the outlook for waste plastics processing industry will be very good, and vice versa. . Judging from the current trend of international oil prices, the waste plastics processing industry will have considerable room for development in the next 5 to 10 years.
Crack profits
1. Low raw material prices, high processing profit margins
The source of waste plastics is very wide. At present, there are three well-known waste plastics distribution centers in China. The first is Wen'an County of Hebei Province, the second is Dongyang Region of Zhejiang Province, and the third is Taizhou Region of Zhejiang Province. The recycling price of waste plastics is about 2,000 yuan/ton, while the market price of recycled pellets is about 6,000 yuan/ton, and the gross profit margin far exceeds other links in the industry.
The market demand for recycled plastics, such as recycled pellets, is increasing at a rate of 9% per annum. It has now exceeded 20 million tons, and currently it can only meet the supply of 40% to 50%. This also includes quality. Very low recycled pellets. The huge market gap has given many processing companies the opportunity to “have a higher price for selling goodsâ€, and it is not surprising that they generate high profits.
3. Poor information channels, fewer industry entrants
Due to the existence of some scams in the field of waste plastics processing in the early days, a considerable number of investors no longer continue to pay attention to the industry. In addition, the industry’s relevance to people’s daily lives is low and information is relatively closed. Therefore, many people do not understand the industry. . With a large market space and few entrants, it is normal for practitioners to make big money.
The practitioner’s business pays attention to the geographical choice
Liu Zhu, senior engineer of the National Plastics Processing Information Center, said that Jiangsu, Zhejiang, Shandong, Guangdong, Hebei and Sichuan provinces are more suitable for small and medium-sized investors to develop waste plastics processing, while the Northeast, Hunan, and Anhui are lagging behind because of the plastics industry. Therefore, it is not suitable for medium and small investors to develop waste plastics processing. For example, Anhui's market capacity is only 20,000 to 300,000 tons. It has already been occupied by some large-scale enterprises. Small and medium investors are hard to enter again.
Have a certain channel
Mr. Li, the boss of a waste plastics processing company in Quanzhou, Fujian, said that the waste plastics processing industry is a “channel is king†industry. If investors do not have a stable waste recycling channel, they will not be able to establish a foothold in the industry. There are three types of recycling channels: one is the national material recycling company; the other is the waste recycling company; and the third is the foreign trade company with import and export rights (the import of waste plastics from abroad must be approved by the state, and the utilization rate of waste plastics is over 80%. , Above, can be allowed to enter the country.
Use of preferential policies
Mr. Li from Qingdao, Shandong Province, has been engaged in the processing of used plastics for six years. He said that the state encourages the development of the recycling of used plastics, and there are certain preferential tax policies. In some regions, enterprises with annual recycling volume of more than 100,000 tons can enjoy preferential treatment, but the local regulations are not the same. Like his company's recovery of 50,000 tons or so can enjoy tax benefits.
To product breakdown
Mr. Chen from Wen'an County, Hebei Province, specializes in the recycling of used plastics. He said that if you want to earn more profits, you have to classify and reprocess it. If you process the recycled pellets, you can't classify them, and the blends have little value and they don't sell. At the same time, there are certain market fluctuations in the waste plastics market. Generally, at the beginning of the year, the middle of the year, and the end of the year, the prices of the products are relatively low and they are not suitable for selling products. At other times, the price of the product is relatively high and it is suitable for shots.
Beware of product backlog
Ms. Wen of Guangdong Province has been engaged in the waste plastics processing industry for five years. She said that the worst taboo product backlog of waste plastics processing is done. The product backlog shows that there is a problem in the local plastics processing market. There may be a saturation of the market, and there may be a large fluctuation in the local raw material market price. In any case, investors need to re-exploit channels, or capital chain breaks will soon appear.
Waste resin is the most profitable
Mr. Jin, a senior debtor of a waste plastics processing company in Taizhou, said that the most profitable waste plastics at present are mainly five kinds of resins, PE, PP, PVC, PS, and ABS. The profits of recycled pellets of these five resins are higher than those of other wastes. Plastics are about 30% higher. Among them, PE and PP are both the best and the most profitable.
Sell ​​to foreign trade companies
China now has 30% of its plastic products exported to foreign countries. Some foreign trade processing companies will specifically purchase some high-quality recycled pellets and mix them with new materials (generally adding 10% to 20% of recycled materials). Product exports, which can reduce the cost of processing companies. Therefore, waste plastic processors can choose foreign trade processing companies such as garbage bags, shopping bags and plastic shoes as target customers.
Imported waste business
Mr. Zhao of Guangzhou stated that in fact, importing used plastics for processing waste is more profitable than domestic waste plastics. The main reason is that the recycled pellets produced are of high quality and can be sold on the market. However, not all kinds of waste can be processed. Imported waste must have a national environmental protection department's permit, otherwise it will be punished by relevant departments. At present, the port cities where imported waste plastics are relatively concentrated are Guangzhou, Ningbo, and Tianjin.
To understand the terminology
Each industry has its own jargon and terminology, and the waste plastic processing industry also has its own terminology. Therefore, when investing in a new bank, investors are advised to go to some professional plastic industry forums to learn some professional terms. These terms are mainly for the very cumbersome chemical molecular formula, and have become a common practice in the industry. Such as polypropylene plastic, then the term will be called "pp". If investors do not understand this, it is difficult to make a business and it may also cause jokes or misunderstandings.
To prepare for the owed funds
Another key link in the field of waste recycled plastics is the accounting period. Under normal circumstances, plastics processing companies will first take three months' worth of goods from waste plastics processing companies, and then settle the payment after three months. This has become a hidden rule in the industry. Therefore, investors who enter the bank should grasp the accounting period and prepare sufficient funds.
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If we want the brush to last us as long as possible, it is also necessary to take good care of it.
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