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The crisis and opportunity of Recycled Plastics

发表时间 :2022-02-28 作者 :广东盈拓

On the February 22 local time, the Russian Federation Council, the upper house of parliament, passed a relevant resolution allowing the Russian president to use the armed forces of the Russian Federation outside Russia. On the same day, the Russian Foreign Ministry issued a statement deciding to withdraw the personnel of the Russian diplomatic mission in Ukraine.


Ukraine declares state of emergency


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The rising oil price

As Russia's war on Ukraine sparked a global craze for safe-haven assets,the international oil benchmark rose more than $4 a barrel.It was the first time since September 2014 that it exceeded $100/barrel,and as the war goes on it would continue to climb above $102/barrel.As of February 24, the price of Brent crude oil has reached as high as$103.12 / barrel.


Vishnu Varathan, head of economics and strategy at Mizuho Bank, said, "The scale of the disruption and the difficulty of replacing Russian oil supplies is very difficult.Which means that oil prices are highly sensitive to Russian geopolitical tensions. "


Vishnu Varathan said,oil prices could surge 15-30% if 30-40% of Russia's oil exports are affected.


As we all know, Russia is a big country in fossil energy, and its oil production accounts for more than 10% of the world. It is the world's second largest oil exporter after Saudi Arabia, exporting approximately 5 million barrels of crude oil per day.In 2020 nearly half or 48% of the 5 million barrels of crude oil, went to European countries, according to U.S. data.


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The U.S. has decided to escalate sanctions against Russia, the most serious of which is to "knock it out of the swift system."


The swift system is a U.S. dollar settlement system, and all inter-bank U.S. dollar transfers must go through it. Being kicked out means that Russia will not be able to use U.S. dollar transfers and cannot conduct foreign trade anymore.Because U.S. dollar is the worlds currency, and all transactions in the world are in U.S. dollars.


Since Russia is an important oil-producing country, once its oil cannot be sold, there will be a problem with the global oil supply, and the oil price will rise sharply. This is also the logic of the skyrocketing oil price.


That means oil prices are not unthinkable at $115-$130 a barrel with an increased risk of a head-on conflict between Russia and the West," Vishnu Varathan said.


Virgin plastics in crisis

The price of plastic is strongly correlated with the price of oil! As crude oil prices continue to rise, as of February 25, the price of plastics has risen by 5% from the 17th.


While the tension between Russia and Ukraine continues to push up crude oil, the "big customer" Russia is busy with the war, which has led to low enthusiasm for acquiring goods. Slow digestion of industrial inventories and the increase in downstream finished product inventories make the virgin plastics market face severe challenges!


Opportunities for recycled plastics

The crisis in the virgin plastics market reflects the importance of recycled plastics in the future.


According to statistics, recycling one ton of waste plastics can save one ton of coal, 6 tons of oil, and 3 tons of carbon dioxide emissions.Recycled plastic is the product of recycling and reusing waste plastics, which can effectively get rid of the dependence on crude oil,and avoid the risk of shortage of raw materials that the plastic market faced.

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A study shows that in 1950, the total global plastic production was 2 million tons, and it has increased year by year.For decades, humans may have produced more than 10 billion tons of plastic.But at present, after tens of billions of plastics are discarded, only 9% are recycled, 12% are incinerated, and the remaining 79% are landfilled or abandoned in nature and not used.


Therefore, how to increase the recycling and reuse of waste plastics is the top priority!


Intop -- grasping the new wave of the world

Intop has been engaged in the construction of the recycling industry chain of waste plastic recycling.


We have a self-built recycling system.With 7 green sorting centers under it, the annual recycling volume of PET bottles reaches 100,000 tons.


The sorting center adopts intelligent optical sorting + robot sorting + manual assisted sorting. Triple checks and standardized operations to ensure the quality of bottle bricks.


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We have a self-built industrial park, covering an area of more than 70,000 square meters.We have 3 complete AAA grade RPET bottle flake production lines, and the comprehensive production capacity is expected to reach 150,000 tons in 2022.


We own a technology and environmental protection enterprise, mainly producing recycled polyester staple fiber.It covers an area of 30,000 square meters, owns 68 product patents, and has an annual output of 80,000 tons of non-conjugated and conjugated recycled polyester staple fibers. The products are exported to nearly 30 countries and regions.


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Intop is a professional PET recycling closed-loop industry chain builder;

Rooted in the past, based on the present, and focused on the future;

Bring the plastics into more harmonious with people and nature;

Recycled plastic is a new trend in the future society, and its importance is already a cliche;

The re-emergence of the crisis in the virgin plastics market just another reminder of the new direction of the wave of the world.

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