China – A Vital Trading Partner for the U.S. Plastics Industry

China – A Vital Trading Partner for the U.S. Plastics

Industry

Presented By:

Michael D. Taylor

Senior Director, International Affairs and Trade

Shenzhen Polymer Industry Association

Shenzhen, PRC

May 25, 2015

Agenda

Background on SPI

An Overview of the U.S. Plastics Industry

How Trade Impacts the Industry

The Sino-U.S. Plastics Industry Trade Situation

Q&A

Founded in 1937, SPI is the only U.S.

trade association representing ALL

segments of the plastics industry

The U.S. Plastics Industry

In 2012…

• Shipped more than $373 billion

in goods

• Employed 892,000 people

• Operated 15,949 facilities in every

U.S. state

• Plastics manufacturers spent more than

$9.6 billion on new capital equipment

In 2013…

• 3rd largest industry in U.S.

• Record-breaking domestic demand

– Up 6.5% to $267 billion

Plastics have Historically Grown

Faster than all Manufacturing

• Plastics manufacturing

employment grew 0.1

percent per year since 1980

• The value of manufactured

shipments grew by 2.3


• Productivity grew by 2.2


Source: SPI “Size and Impact of the U.S. Plastics Industry” (2012)

U.S. Demand for Plastics sets

New High Level

$0

$50

$100

$150

$200

$250

$300

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

$ in b

illio

ns

Machinery Molds Plastic Products Resin

Apparent Consumption = Shipments + Imports – Exports

Source: SPI “Global Business Trends” (2014)

Positive

trade balance

of $12.6 billion

$49.5B PLASTICS 7.3%

2014 Trade Statistics

In 2014, the U.S. plastics industry exported goods valued at $62.1 billion, up 3.1

percent from 2013

$35.1B RESINS 1.8%

$25.0B PRODUCTS 5.1%

$528.3M MOLDS 10.1%

$1.7B MACHINERY 7.7%

Source: U.S. International Trade Commission

Top Industry Export Markets

$0

$5

$10

$15

$20

$25

$30

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

U.S

. $

Bill

ion

s

Mexico Canada China Belgium Brazil All Others

Top Plastics Industry

Export Markets 2014

All Others $23.5 billion

Mexico $15.8 billion

Canada $13.2 billion

China $5.2 billion

Belgium $2.4 billion

Brazil $2.1 billion

Total $62.1 billion

Changes in U.S. Plastics

Industry Exports

9.5%

3.0%

-8.9%

-3.8% -4.8% -2.5% -2.2%

-9.5%

0.6%

-11.5%

-0.03%

9.1%

0.4% 0.4%

12.0% 11.4%

-13.3%

14.2%

2.4% 1.9%

-5.8%

2.7%

5.9% 4.4%

7.4%

3.0%

-8.3%

3.6% 1.5%

5.8%

11.5% 9.6%

3.1%

-30%

-20%

-10%

0%

10%

20%

30%

40%

Mexico Canada China Belgium Brazil Japan SouthKorea

Germany UnitedKingdom

HongKong

World

2012 2013 2014

Changes in U.S. Plastics Industry Exports for the Top 10 Exports Markets 2012-2014


Trans-Pacific Partnership Trans-Atlantic Trade &

Investment Partnership

Global Opportunities in New

Markets

• In 2013, U.S. plastics

industry exports to the 11

TPP countries were more

than $32 billion.

• Since 2000, plastics

exports to TPP countries

have increased 84

percent.

• In 2013, the plastics

industry had a trade

surplus with TPP

countries of more than

$13.8 billion.

• A high-standard TTIP

would advance trade and

investment liberalization

and address regulatory

and other non-tariff

barriers.

• Based on 2011 trade

flows, the U.S. plastics

industry would be one of

the top benefiting sectors

with a total potential tariff

savings of $465 million.

U.S. Plastics Trade Balance

by Segment 2000-2014


-10

-5

0

5

10

15

20

25

Resin Products Machinery Molds

U.S. Plastics Trade Balance with

FTA Countries by Segment

2000-2014


-2

0

2

4

6

8

10

12


Top U.S. Resin Export Markets

2000-2014

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000200

0

200

1

200

2

20

03

200

4

200

5

200

6

200

7

200

8

200

9

201

0

20

11

201

2

201

3

201

4

Mexico Canada China Belgium Brazil

South Korea Japan Netherlands Hong Kong Colombia

U.S

. $ M

illio

ns

Top U.S. Resin Export Markets

by Percentage 2014

17.7%

10.8%

5.5%

4.3%

3.1%

3.1%

2.3% 2.2% 1.7%

Canada China Belgium Brazil South Korea

Japan Netherlands Hong Kong Colombia All Others

Top U.S. Resin Import Markets

2000-2014

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000200

0

200

1

200

2

20

03

200

4

200

5

200

6

200

7

200

8

200

9

201

0

20

11

201

2

201

3

201

4

Canada Germany Mexico Japan

China South Korea Taiwan Netherlands

United Kingdom France

U.S

. $ M

illio

ns


by Percentage 2014

9.8%

7.9%

7.4%

5.8%

5.1%

2.5%

2.3%

2.2% 2.2%

Germany Mexico Japan China

South Korea Taiwan Netherlands United Kingdom

France All Others


2000-2014

0

200

400

600

800

1,000

1,200

1,400

1,600200

0

200

1

200

2

20

03

200

4

200

5

200

6

200

7

200

8

200

9

201

0

20

11

201

2

201

3

201

4

Germany Mexico Japan

China South Korea Taiwan

Netherlands United Kingdom France

U.S

. $ M

illio

ns

U.S. Plastics Trade Balance

with China by Segment 2000-2014


-12

-10

-8

-6

-4

-2

0

2

4


U.S. Produced Goods

79.6% 84.4%

36.6%

54.7%

82.0%

0%

20%

40%

60%

80%

100%

Resins Products Machinery Molds Total Industry

% S

hare

U.S. Produced Goods Retain Significant Market Share in the Industry Segments

Source: SPI “Global Business Trends” (2014)

HTS Classification

• POLYACETALS, OTHER POLYETHERS AND EPOXIDE RESINS, IN PRIMARY FORMS; POLYCARBONATES, ALKYDS, POLYALLYL ESTERS AND OTHER POLYESTERS, IN PRIMARY FORMS

• POLYMERS OF VINYL CHLORIDE OR OF OTHER HALOGENATED OLEFINS, IN PRIMARY FORMS

• POLYMERS OF PROPYLENE OR OF OTHER OLEFINS, IN PRIMARY FORMS

• PETROLEUM RESINS, COUMARONE-INDENE RESINS, POLYTERPENES, POLYSULFIDES, POLYSULFONES AND OTHER SPECIFIC SYNTHETIC POLYMERS NESOI, IN PRIMARY FORMS

• AMINO-RESINS, PHENOLIC RESINS AND POLYURETHANES, IN PRIMARY FORMS

Top U.S. Resin Exports to China

2000-2014

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000200

0

200

1

200

2

20

03

200

4

200

5

200

6

200

7

200

8

200

9

201

0

20

11

201

2

201

3

201

4

POLYACETALS POLYMERS OF ETHYLENE SCRAP PLASTICS

POLYMERS OF VINYL CHLORIDE POLYAMIDES CELLULOSE

POLYMERS OF PROPYLENE PETROLEUM RESINS ACRYLIC POLYMERS

AMINO-RESINS

U.S

. $ M

illio

ns


2000-2014

0

200

400

600

800

1,000

1,200

1,400

1,600200

0

200

1

200

2

20

03

200

4

200

5

200

6

200

7

200

8

200

9

201

0

20

11

201

2

201

3

201

4

POLYMERS OF ETHYLENE SCRAP PLASTICS POLYMERS OF VINYL CHLORIDE

POLYAMIDES CELLULOSE POLYMERS OF PROPYLENE

PETROLEUM RESINS ACRYLIC POLYMERS AMINO-RESINS

U.S

. $ M

illio

ns


by Percentage 2014

13.6%

11.4%

9.6% 8.7%

6.0%

5.1%

4.1%

3.9% 3.4%

POLYMERS OF ETHYLENE SCRAP PLASTICS

POLYMERS OF VINYL CHLORIDE POLYAMIDES

CELLULOSE POLYMERS OF PROPYLENE

PETROLEUM RESINS ACRYLIC POLYMERS

AMINO-RESINS ALL OTHERS

Top U.S. Resin Imports from

China 2000-2014

0

50

100

150

200

250200

0

200

1

200

2

20

03

200

4

200

5

200

6

200

7

200

8

200

9

201

0

20

11

201

2

201

3

201

4

AMINO-RESINS POLYACETALS CELLULOSE

POLYMERS OF VINYL CHLORIDE ACRYLIC POLYMERS ION-EXCHANGERS

POLYMERS OF ETHYLENE POLYMERS OF STYRENE PETROLEUM RESINS

NATURAL POLYMERS

U.S

. $ M

illio

ns

Top U.S. Resin Imports from

China by Percentage 2014

20.4%

13.1%

8.1%

6.2%

6.2%

5.2%

4.6%

3.9% 3.2%

POLYACETALS CELLULOSE

POLYMERS OF VINYL CHLORIDE ACRYLIC POLYMERS

ION-EXCHANGERS POLYMERS OF ETHYLENE

POLYMERS OF STYRENE PETROLEUM RESINS

NATURAL POLYMERS ALL OTHERS

Thank You!

谢谢 Merci Vielen Dank

Grazie ありがとうございました 감사합니다

Obrigado Спасибо Gracias Teşekkürler

Questions & Answers

Michael Taylor

[email protected]

202-974-5232

mailto:[email protected]