China plastic industry shows slower growth

BEIJING -- China's plastic output expanded 11.5 percent in the first four months, two percentage points higher than the country's overall industrial output growth, but slowing from the 16.9 percent in the same period last year, an industry report showed.

Plastic industry reflects trends in the petrochemical market and the macro economic situation as well.

According to the report from China National Light Industry Council, plastics industry has met some difficulties amid weak economic recovery both at home and abroad.

The industry has entered a period of "reasonable growth" after years of fast development, said the report.

During this period, Chinese plastic producers raked in 532.7 billion yuan ($86.9) from their main businesses, with the profit of 26.9 billion yuan.

China exported plastic products valued at 16.8 billion yuan in the first four months, up 23 percent year-on-year.

In the first quarter, fixed asset investment into the rubber and plastic sector stood at 72.3 billion yuan, rising 23.1 percent year-on-year.

To help manage risks in the plastic industry, China's Dalian Commodity Exchange's (DCE) is preparing to launch polypropylene futures within this year.

Currently, two plastic products LLDPE and PVC are traded on the DCE. Last year, Dalian LLDPE and PVC futures prices respectively moved in a range of 21.55 percent and 11.45 percent.