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Recycled plastics: what are the risks in processing and circulation? How to avoid risks?

2021-10-25  528

Recently, the Environmental Protection Bureau of Bohu county has made great efforts to carry out the special rectification of the waste plastics industry. It has investigated and rectified the waste plastics recycling enterprises in the whole county. The law enforcement personnel have issued work tips to the enterprises with problems found in the inspection, requiring them to carry out strict rectification in accordance with relevant regulations. Next, it will further standardize the environmental management of the waste plastics processing industry, Put forward further requirements for waste plastic processing and utilization enterprises to eliminate secondary pollution.


In recent years, under the guidance of environmental protection and national policies, the threshold of waste plastic processing industry standards has been continuously raised, and the risks are also increasing. For producers and traders of recycled plastics, the business risks mainly include the following aspects:


1. Policy aspect

Recycled plastics industry is a policy oriented industry, and the policy has a far-reaching impact on the industry. For example, environmental protection inspection, for most producers, if the area is subject to environmental protection inspection irregularly, the production stability will be naturally affected; The same is true for traders. If the production is unstable, their own supply of goods will also be constrained. Another example is the gradual implementation of the "ban on the import of waste plastics" in 2017, which means that the stable source of raw materials is about to be cut off for processing plants, and they need to start building new raw material collection channels.


2. Qualification risk

Under the environment-friendly production pattern, enterprises need to improve various procedures and qualifications if they want to stay in the renewable industry for a long time. On the one hand, the risks are mainly aimed at producers. In the past two years, environmental protection inspections have been frequent and strict. Many family workshop enterprises have been repeatedly checked because of incomplete qualifications, procedures or equipment. In addition, the scope of procedures in some regions is vague. After the policy change, the procedures that some enterprises have gone through have not been recognized. Such risks are common in small and medium-sized markets.


3. Channel

Channels are mainly divided into purchase and sales channels, which can only be called trading if there is a buy and sell channel. If there is only production but sales are blocked, the operation risk of producers will inevitably increase. In addition, the same is true for procurement. For example, after the original waste plastics were banned from import in 2018, many recycled manufacturers that used imported waste plastics as raw materials faced the risk of collapse of procurement channels and had to look for domestic waste plastics to replace them.


4. Profit risk

Compared with the profits of thousands of yuan / ton in previous years, most of the recycling industry has gone forever for most of the recycled plastic products, and now the low profit operation is normal. Take renewable polyolefin as an example, the profit will also drop to 100-300 yuan / ton in 2020. If there are problems such as after-sales or debt, the profit will be further reduced. How to operate steadily in the era of meager profits will be the key to directly test whether an enterprise can continue to survive.


5. Capital risk

Whether for producers or traders, capital is a very important link. At present, cash transactions are mainly used in raw material procurement, which directly tests the cash flow of production enterprises and traders. In the granular transaction phase, the transactions between the manufacturer and the trader are usually settled in cash, and the trader in this phase needs to have sufficient cash flow; Most of the transactions between production enterprises and downstream product enterprises have a certain accounting period or acceptance transactions, which require the production enterprises to have a certain cash flow. According to zhuochuang information, at present, some downstream funds are in serious difficulties, and the payment period of renewable enterprises is long, resulting in a high risk of capital withdrawal.


6. Managing risk

At present, most recycled plastics enterprises are upgraded from family workshops, without systematic management and planning, and most enterprises have certain operational risks as a whole. At the same time, according to the development trend of the industry, most enterprises have not yet formulated a clear enterprise plan.