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The development of masterbatch industry.
03/14/2019

China's masterbatch industry has developed rapidly in the past two years, and some large-scale enterprises have emerged. There appeared enterprises with annual output of 10,000 tons, output value of over 100 million, and profits and taxes of tens of millions. Some enterprises have also won the title of provincial-level famous brand products. A batch of masterbatch product trademarks were awarded famous trademarks. Overall, the number of large-scale masterbatch enterprises has developed significantly compared with that of 2005, indicating that China's masterbatch industry is entering a benign development track. From the perspective of geographical distribution, China's masterbatch enterprises are still concentrated in Guangdong, Jiangsu, Zhejiang, Shanghai and Shandong. The output of these regions accounts for more than 85% of the total production of masterbatch. Among them, Guangdong is still the most important production base of masterbatch in China, and its output accounts for 38.37% of the national total.

 

Generally speaking, the development of China's masterbatch industry is in line with the development of the plastics industry. According to statistics, the total annual output of plastic products in China has reached 50 million tons, and the output of masterbatch is just 1% of the output of plastic products. The development is relatively coordinated. The development of China's plastic products industry has brought opportunities for the development of masterbatch industry and is the main driving force for the development of masterbatch industry.

 

However, while the output of the masterbatch industry in China has been greatly improved, it has also encountered some problems that are difficult to avoid.

 

The first is the lack of authoritative testing institutions in China's masterbatch industry. With the implementation of EU RoHS, REACH and other regulations, China's masterbatch is subject to more stringent restrictions on the export of its pigmented products. However, there is currently no authoritative testing institution capable of producing professional test reports for masterbatch. There is only one polyethylene masterbatch industry standard, which causes many masterbatch manufacturers to detect no problems when it comes to export and environmental protection door. Due to the wide range of applications of masterbatch and many downstream products, no authoritative testing institutions are very unfavorable for the development of the whole industry.

 

Secondly, the masterbatch has not been listed in the customs tax number, which makes the masterbatch enterprises with export business will be greatly affected by the adjustment of China's export tax rebate policy. Masterbatch has never had a separate tax number in China's customs import and export tax items. In the past, 32041700 pigments and products with their basic components were used for export. The masterbatch is mainly used for the coloring of plastic products, and is a plastic raw material which is made of a polymer such as polyolefin as a carrier resin, a dispersant and a suitable shaker, and is physically mixed and subjected to twin-screw granulation. The processing of masterbatch belongs to the processing range of plastics. The composition and shape are similar to those of polyolefin. When exporting, customs code should use 391 series more reasonable, instead of the 320 series used in the past. On this issue, the Masterbatch Commission has submitted a new customs code to the relevant authorities through its China Dye Industry Association.

 

At present, China's masterbatch industry is developing towards multi-functionality, high pigment content and high technology content. Some excellent masterbatch enterprises can “tailor-made” the masterbatch varieties according to customer requirements. Each company has its own characteristics and expertise, which can basically meet the needs of domestic customers. Many masterbatch factories can also produce functional masterbatches and plastic modified materials. Overall, China's masterbatch industry has developed rapidly, and has played a good role in promoting the development of the plastics and fiber industry.

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