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Manufacturers Have Replaced Food Grade PE Films with Industrial/Agricultural PE Films
2021/7/21
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According to Dong Jinshi, Executive Vice President and Secretary General of the International Food Packaging Association, on December 1, 2009, the implementation of GB10457-2009 "Plastic Self Adhesive Freshness Preserving Films for Food Use" will be officially implemented. The scope of the new standard will be expanded from plastic films made of polyethylene to plastic films made of resins such as polyethylene (PE), polyvinyl chloride (PVC), and polyvinylidene chloride (PVDC), requiring the resin to be a food grade raw material, The additives and dosage used should also comply with the provisions of GB-9685, and the word "for food use" should be marked on the cling film. However, from the current situation of plastic wrap, even the acclaimed PE plastic wrap in the industry has a mixed quality:
1. Some manufacturers use industrial and agricultural grade PE films instead of food grade PE films, posing a threat to consumer health.
2. Some manufacturers add excessive plasticizers to increase the viscosity and stretchability of plastic wrap.
3. The plasticizer DEHA, which is explicitly prohibited by the state from being used in PVC cling films, is still being used covertly in some foreign-funded enterprises in China, and this substance has the potential to cause cancer.
4. Some chain supermarkets are still using PVC cling film to wrap food containing fats, which poses significant safety hazards.
Plastic Weekly Report: Breaking through the previous high point and continuing to hold multiple orders
Last week, LLDPE futures continued to rise. The main contract 1005 closed at 12495 yuan last Friday, up 205 yuan from the previous week.
Supported by tight supply, Asian ethylene continued to rise, with CFR Northeast Asia rising by $8.5 per ton and Southeast Asia rising by $6.5 per ton.
Due to issues with the Middle East installation, the price of HDPE film in Asia increased by $10/ton last week, at $1275/ton CFR China, LDPE increased by $15/ton, and at $1445/ton CFR China, LLDPE increased by $20/ton at $1365/ton CFR China. On December 22nd, a strong storm and heavy rain hit Yanbu and other areas on the west coast of Shat, causing a temporary interruption of local electrical circuits. Last week, traders further increased their quotes, with HDPE film traders quoting $1300/ton for CFR China, with some transactions at $1270/ton for CFR China. The price increase this time has boosted the profits of the PE market.
On the domestic side, supported by high prices of upstream raw materials, upstream petrochemical manufacturers have maintained stable quotations, with only Yangzi Petrochemical increasing by 200 yuan/ton and PetroChina Southwest increasing by 100 yuan/ton. Various agricultural films in the downstream are currently in the off-season of production and sales, so downstream merchants are more willing to hold their coins and observe, with average trading in the spot market.
In terms of new equipment, Panjin Ethylene has opened its 450000 ton/year new naphtha cracking unit, which is expected to supply 300000 tons/year of HDPE/LLDPE and 250000 tons/year of polypropylene production. The HDPE/LLDPE and PP devices are currently undergoing testing and are expected to be officially put into operation in late December. The new equipment of Tianjin Lianhua is planned to be put into operation before the end of the year, and is scheduled to start on January 15th. The start-up status of the newly added facilities in Panjin Ethylene and Tianjin Lianhua will become a focus of attention in the near future.
The domestic supply is gradually increasing, and there are hidden dangers in the supply side as the newly added production capacity has not been fully released.
The cold weather in the United States has boosted demand for heating oil, and crude oil prices have approached $80. The future may be dominated by a strong oscillation trend. Due to the limited overall resources in the PE market and the support of upstream costs, PE prices will remain strong, and businesses are optimistic about the future. Based on good expectations for upstream raw materials, Sinopec/PetroChina's price policy in January will remain stable and upward.
Liansu has already broken through the previous high and may continue to exhibit strong oscillations this week. It is recommended to continue holding multiple trades and not easily short.
1. Some manufacturers use industrial and agricultural grade PE films instead of food grade PE films, posing a threat to consumer health.
2. Some manufacturers add excessive plasticizers to increase the viscosity and stretchability of plastic wrap.
3. The plasticizer DEHA, which is explicitly prohibited by the state from being used in PVC cling films, is still being used covertly in some foreign-funded enterprises in China, and this substance has the potential to cause cancer.
4. Some chain supermarkets are still using PVC cling film to wrap food containing fats, which poses significant safety hazards.
Plastic Weekly Report: Breaking through the previous high point and continuing to hold multiple orders
Last week, LLDPE futures continued to rise. The main contract 1005 closed at 12495 yuan last Friday, up 205 yuan from the previous week.
Supported by tight supply, Asian ethylene continued to rise, with CFR Northeast Asia rising by $8.5 per ton and Southeast Asia rising by $6.5 per ton.
Due to issues with the Middle East installation, the price of HDPE film in Asia increased by $10/ton last week, at $1275/ton CFR China, LDPE increased by $15/ton, and at $1445/ton CFR China, LLDPE increased by $20/ton at $1365/ton CFR China. On December 22nd, a strong storm and heavy rain hit Yanbu and other areas on the west coast of Shat, causing a temporary interruption of local electrical circuits. Last week, traders further increased their quotes, with HDPE film traders quoting $1300/ton for CFR China, with some transactions at $1270/ton for CFR China. The price increase this time has boosted the profits of the PE market.
On the domestic side, supported by high prices of upstream raw materials, upstream petrochemical manufacturers have maintained stable quotations, with only Yangzi Petrochemical increasing by 200 yuan/ton and PetroChina Southwest increasing by 100 yuan/ton. Various agricultural films in the downstream are currently in the off-season of production and sales, so downstream merchants are more willing to hold their coins and observe, with average trading in the spot market.
In terms of new equipment, Panjin Ethylene has opened its 450000 ton/year new naphtha cracking unit, which is expected to supply 300000 tons/year of HDPE/LLDPE and 250000 tons/year of polypropylene production. The HDPE/LLDPE and PP devices are currently undergoing testing and are expected to be officially put into operation in late December. The new equipment of Tianjin Lianhua is planned to be put into operation before the end of the year, and is scheduled to start on January 15th. The start-up status of the newly added facilities in Panjin Ethylene and Tianjin Lianhua will become a focus of attention in the near future.
The domestic supply is gradually increasing, and there are hidden dangers in the supply side as the newly added production capacity has not been fully released.
The cold weather in the United States has boosted demand for heating oil, and crude oil prices have approached $80. The future may be dominated by a strong oscillation trend. Due to the limited overall resources in the PE market and the support of upstream costs, PE prices will remain strong, and businesses are optimistic about the future. Based on good expectations for upstream raw materials, Sinopec/PetroChina's price policy in January will remain stable and upward.
Liansu has already broken through the previous high and may continue to exhibit strong oscillations this week. It is recommended to continue holding multiple trades and not easily short.