Plastic bottles, increasing pressure on earnings

Plastics, bottle caps, plastic packaging hoses and other industries are currently under increasing pressure to survive. They are in a profitable state at the bottom of the valley. Senior trading personnel of China Packaging Bottle Network are full of worries about this imagination and have conducted rough analysis.
Since 2007, the main raw materials for the plastics industry, such as polyethylene, polypropylene, and polyester chips, have remained at a high price, but the year-on-year increase rate has been relatively limited. As a result, the industry’s main profit margin level has risen slightly, but it is still at a low level. Historically low levels, the overall profitability remains normal.

From the perspective of long-term trends, plastics products sub-sectors have low barriers to entry and low industry concentration. Traditional film products such as BOPET and BOPP are affected by severe overcapacity at the same time. The price competition is fierce, and the high return on assets of the plastics industry is difficult to reproduce in the future. As a high-sinking capital investment industry, technological advances have caused machinery and equipment to remain in a state of accelerated depreciation. Plastics industry sub-sectors are difficult to value investment opportunities in the short term.
This article must be reproduced in the source: Chinese bottle net

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