capacity, output and operating rate of PVC paste resin in China

Disposable PVC gloves industry research report

1、Overview of glove Market

1.1 Classification of gloves

 

The main function of gloves is protection,Such as anti chemical, anti cutting, electrical insulation, waterproof, cold, thermal radiation, bacteria, radiation and other functions.In some industries where glove replacement frequency is high, disposable gloves are usually used,In this way, not only can cross infection be avoided, but also the replacement cost can be greatly saved,For example, medical industry, laboratory, food processing industry and other industries with higher requirements. Disposable gloves mainly include Latex gloves, Polyvinyl chloride gloves, Nitrile gloves and Polyethylene gloves.

 

Types of gloves   Application area raw material Advantage Shortcoming
Latex gloves latex glove Medical surgery, automobile manufacturing, battery manufacturing, FRP industry, aircraft assembly, aerospace, environmental cleaning and cleaning Natural latex Strong elasticity and adhesion It may cause skin allergy, unstable supply of raw materials and high price
Nitrile gloves nitrile glove Electronic factory, medical inspection, food industry, housework, chemical industry, aquatic industry, glass products and scientific research industries Nitrile, latex Avoid latex allergy, good elasticity and stable supply of raw materials The price is higher than PVC gloves
PVC gloves pvc glove Medical examination, medical care, laboratory, electronic products processing, food processing, fast food services and other fields PVC paste resin Good ventilation, acid and alkali resistance, antistatic, cheaper price It is not flexible enough to be used in surgery
PE gloves pe glove catering trade polyethylene The price is low Poor elasticity and easy damage

 

table1  Comparison of gloves

 

On the whole, with the progress of modern petrochemical technology and the gradual improvement of industrial matching, as well as the continuous development and application of new auxiliary products, the large-scale production process of PVC gloves is becoming more and more mature, and with the advantages of sufficient supply of raw materials, PVC gloves have become the leading variety of disposable gloves. Compared with nitrile gloves, PVC gloves have more prominent cost advantages, comfortable to wear, good protection effect and high performance price ratio. This paper focuses on the analysis of PVC glove industry.

1.2 Glove industry chain

From the perspective of industrial chain, the main raw materials of PVC gloves upstream are PVC paste resin, plasticizer, calcium zinc stabilizer, etc., among which PVC paste resin and plasticizer are the most important raw materials. PVC gloves are mainly used in medical examination, medical care, food processing, laboratory, electronic processing and other fields with high health requirements, as shown in Figure 1.

 

Upstream and downstream of PVC glove industry

Figure 1 Upstream and downstream of PVC glove industry

2、Upstream products of PVC gloves

2.1Polyvinyl chloride paste resin

Vinyl chloride is an important monomer used in polymer chemical industry, which can be prepared from ethylene or acetylene. It is a colorless and liquefiable gas with boiling point of – 13.9 ℃, critical temperature of 142 ℃ and critical pressure of 5.22 MPa. Vinyl chloride is a toxic substance. Liver cancer is related to long-term inhalation and exposure to vinyl chloride.

Polyvinyl chloride (PVC) is a high molecular compound polymerized by vinyl chloride monomer (VCM). The molecular formula is shown in Figure 2. The degree of polymerization can be controlled by reaction temperature and polymerization molecular weight regulator. By making the content of VCM in PVC resin less than 10ppm, it can meet the requirements of hygienic grade resin and expand the application range of PVC. It can even make the VCM content in the resin less than 5ppm, and the residual VCM after processing is very little, which is basically harmless to human body, and can be used as food and drug packaging and children’s toys. The molecular weight of industrial PVC is generally in the range of 50000-110000, which has large polydispersity and increases with the decrease of polymerization temperature; it has no fixed melting point, begins to soften at 80-85 ℃, becomes viscoelastic at 130 ℃, and changes into viscous flow state at 160-180 ℃; it has good mechanical properties, tensile strength about 60MPa, impact strength of 5-10kj / m2, and excellent dielectric properties.

Molecular formula of PVC

Figure 2 Molecular formula of PVC

Source: public information

There are two main processes for vinyl chloride, calcium carbide process and ethylene process. Calcium carbide method: using calcium carbide (calcium carbide CaC2) to generate acetylene (C2H2), acetylene and hydrogen chloride (HCl) to synthesize vinyl chloride monomer (ch2chcl), and then polymerize vinyl chloride to produce polyvinyl chloride – [ch ChCI] n -. Ethylene method: ethylene (C2H4) is extracted from petroleum and chlorine is replaced with ethylene to prepare vinyl chloride monomer, which is polymerized to produce polyvinyl chloride resin. The cost of calcium carbide process is lower than that of petroleum process, but the quality of vinyl chloride monomer produced by calcium carbide method is slightly worse than that of petroleum method (that is to say, PVC produced by calcium carbide process is slightly better than that by calcium carbide method), and the pollution caused by calcium carbide method is larger. In the west of China, there are advantages in resources (calcium carbide is mostly produced by enterprises in Western China, and coal mines are also rich), energy consumption (low cost of water and electricity), and manpower (low labor cost). Therefore, calcium carbide method accounts for most of China’s PVC production capacity. A few chlorine chemical enterprises such as Shanghai chlor alkali Co., Ltd. adopt ethylene process because they have chlorine products, which accounts for about 20% of the production capacity. There is a certain gap between the cost price of calcium carbide method and ethylene method. Because of environmental protection, petroleum resources and other factors, ethylene process is basically used in foreign countries.

Calcium carbide method and ethylene method

Figure 3 ene method

Source: public data collation

PVC paste resin is a unique liquid form of PVC plastic in the raw state. PVC paste resin because of its fine particle size, its texture like talcum powder, with no fluidity. PVC paste resin is mixed with plasticizer to form a stable suspension, which is made into PVC paste, or PVC plastisol or PVC sol, and it is in this form that people use to process the final product. In the process of paste making, various fillers, diluents, heat stabilizers, foaming agents and light stabilizers are added according to the needs of different products. PVC paste resin is named for its highly dispersed powder used in paste processing. It is mainly used in the soft material field of PVC resin because of its excellent paste property and good dispersibility. It is widely used in artificial leather, decorative materials, floor leather, wall paper, industrial conveyor belt, sports ground, coatings, adhesives, toys, disposable medical gloves, daily decorative materials, electrical instruments and electrical tools, etc.

2.2 production process of PVC paste resin

The polymerization methods adopted in developed countries include emulsion seed polymerization, emulsion seed continuous polymerization, emulsion seedless polymerization, micro suspension polymerization, seed micro suspension, mixing method, etc. The main methods of polymerization in China are micro suspension polymerization, seed emulsion polymerization and mixing. PVC paste resin belongs to chemical industry, price and capacity are the most important analysis indexes.

2.2.1 capacity of PVC paste resin in China

In the past few years, the production of PVC paste resin in China has developed into one of the fastest growing countries in the world. In 2008-09, the price of PVC paste resin was impacted, and the production capacity did not increase. However, after 2009, market demand increased, product prices went up, and there was homogenization competition caused by overcapacity in powder market. Many enterprises began to transform PVC paste resin. By 2014, the production capacity of PVC paste resin has increased by 1.34 million tons, an increase of 135% over 2009. In 15 years, due to the relationship between supply and demand, it has dropped slightly.

capacity, output and operating rate of PVC paste resin in China

Figure 4 capacity, output and operating rate of PVC paste resin in China

Source: CNKI

Compared with the consumption of 873000 tons in 15 years, the capacity of PVC paste resin in China is far too much. Therefore, if the downstream demand cannot keep the same growth rate, the price of PVC paste resin will be under pressure for a long time. The operating rate data also reflects the oversupply of the industry, with the operating rate falling from nearly 90% in 10 years to 57% in 15 years.

2.2.2 price trend of PVC paste resin

We selected PVC paste resin glove material in East China as a reference. Previously, the price of PVC paste resin was more than 10000 yuan per ton, but it continued to decline from 12 to 15 years, and the lowest price was around 6500 yuan,In 16 years, the price of PVC paste resin increased along with the overall price rise of the cycle industry, but it did not exceed the previous high point. In view of the existence of a large number of idle capacity, after the profit balance point has been put into production, it is difficult for prices to continue to rise.

price trend of PVC paste resin

Figure 5 price trend of PVC paste resin

Source: wind

2.2.3 PVC paste resin demand

Domestic PVC paste resin is mainly used in gloves, artificial leather, conveyor belt, wallpaper, toys, floors, automobiles and other fields. See the table for details. The demand of PVC paste resin belongs to the secondary demand of related industries. In the past 15 years, the apparent consumption of PVC paste resin in China has reached 873000 tons, among which glove material has become the largest application. And the space of wallpaper, conveyor belt and other fields need to be further explored. In the past few years, the consumption of PVC paste resin has maintained a growth rate of about 10%, which is slower than the expansion of production capacity. Table 2 shows the application of PVC paste resin.

PVC paste resin and its downstream application

Table 2 PVC paste resin and its downstream application

Source: CNKI

Because of the special PVC paste resin in some fields, it is difficult for domestic products to meet the quality requirements. Before that, the impregnated glove materials and the current automobile interior materials need to be imported from abroad, which reflects the contradiction between the supply and demand of domestic PVC paste resin, that is, the supply of low-end PVC paste resin is seriously excessive, but the demand of high-end PVC paste resin is still unable to meet the demand. See Table 3 for specific data. The main difficulties are in the polymerization formula and polymerization conditions, which is the general direction of the industry development in the future. However, the data show that the import volume of PVC paste resin accounts for a decrease in the proportion of consumption, indicating the reduction of foreign dependence. The main importers are: Japan Zhongyuan, Dongcao company, Korea Hanhua chemical, LG Chemical, Taiwan Formosa Plastics, etc. These have a long history of R & D and production in this field, and the technology of PVC paste resin in China is mainly introduced from the above companies.

supply and demand comparison of PVC paste resin in China

Table 3 supply and demand comparison of PVC paste resin in China

Source: CNKI

2.2.4 analysis of major manufacturers

In 15 years, the production capacity of PVC paste resin in China was about 1.31 million tons, and there were about 20 major manufacturers. Among the larger ones, Botian chemical, Zhongyan hongsifang, Xinjiang Tianye and Shenyang Chemical Co., Ltd. were distributed in East China, North China and Northwest China. Those who can produce glove materials include Botian chemical, Shandong Langhui, Shanghai chlor alkali, Zhongyan Hongfang, Inner Mongolia chenhongli, Shenyang chemical industry, etc. As can be seen from the table below, the expansion of industrial capacity is mainly in 14 years. The pollution of PVC paste resin, especially the preparation of VCM by calcium carbide method is very serious. Because of its location in Beijing, Tianjin and Hebei Province, Botian Chemical Co., Ltd. has moved to Inner Mongolia for 15 years due to environmental problems.

However, on the whole, although some enterprises have moved to China due to environmental protection problems in the past 15 years, there are still some manufacturers such as China National Salt Jilantai, Yangmei Xiyang chlor alkali, etc. to expand their production capacity, so the production capacity is still increasing. Therefore, the overall price of PVC paste resin will not rise in the near future.

main domestic PVC paste resin manufacturers

main domestic PVC paste resin manufacturers

Table 4 main domestic PVC paste resin manufacturers and important production capacity years

Source: public data collation

2.3 plasticizers and stabilizers

Plasticizer is the largest additive variety in modern plastic industry, which plays a decisive role in promoting the development of plastic industry, especially PVC industry. Plasticizers are liquid organic compounds or low melting point solids that can be uniformly mixed with resin without chemical changes, but can reduce the glass transition temperature of materials and the melt viscosity during plastic molding, and keep the same itself, or can remain in plastic products for a long time and change some physical properties of the resin, which have these properties of liquid organic compounds or low melting point solids.

Plasticizers can reduce the modulus of elasticity and tensile strength at break, improve elongation and elongation at break, improve softness, improve reversible bending strength, improve toughness and impact strength, reduce glass transition temperature, expand the applicability of polymers at lower temperatures, improve adhesion to various substrates, improve or reduce film sealability, improve lubrication performance and reduce friction The plastic agent refers to the organic material that increases the plasticizer of plastics, improves the fluidity of resin during molding process, and makes the product flexible.Commonly used plasticizers are phthalate esters, such as dioctyl phthalate (DOP), dinyl phthalate (DINP) and DIDP. Although the molecular formula is complex, it is not difficult to synthesize and analyze separately. Other additives are ca Zn stabilizer.

3、Analysis of glove industry

Disposable PVC gloves originated in the United States, and then transferred from Taiwan to the mainland of China. In 1993, Shijiazhuang Hongrui group, a company that cooperated with Taiwan in the mainland, introduced a production line to process PVC gloves. After 2000, China has become the largest disposable PVC glove production area in the world, and the key paste resin technology and process technology are constantly improving

Analysis of glove industry

Source:

Disposable PVC gloves are mainly divided into medical grade and non-medical grade according to their uses. The quality requirements of medical grade are higher, and the relative price is also higher. Therefore, the proportion of medical grade products in income is an important index to investigate disposable PVC glove enterprises.

3.1 PVC glove terminal market

At present, the consumer market of disposable gloves is mainly concentrated in developed countries in the world, such as the United States, the European Union, Japan and so on. According to literature experience data: in the consumption market share of disposable gloves, the United States accounted for 53%, Europe accounted for 21%, Japan accounted for 12%, and other countries accounted for 14%. The United States has a systematic trade data of disposable gloves and selects the U.S. market as an observation sample. Table 5 and table 6 show the import prices and quantities of disposable gloves in the United States.

quantity of latex gloves, nitrile gloves and PVC gloves

Table 5 FOB price of latex gloves, nitrile gloves and PVC gloves imported from the United States (unit: USD / 1000 pieces)

imported from the United States

Source: US Department of trade website

From the perspective of price trend, the price of PVC gloves is basically downward trend, from $18.29/1000 in 2011 to $13.38/1000 in 15 years, which is basically consistent with the data disclosed by BCE. The price of PVC gloves of Yingke decreased from 100.39 yuan / 1000 pieces in 13 years to 85.26 yuan / 1000 pieces in 16 years. The price of latex gloves also declined after 11, but the price was more than twice as expensive as PVC gloves. However, the price of nitrile gloves is basically rising, from $45 / 1000 in 2009 to $64.17/1000 in 2015. PVC gloves have obvious advantages in price.

quantity of latex gloves, nitrile gloves and PVC gloves

Table 6 quantity of latex gloves, nitrile gloves and PVC gloves imported from the United States (unit: 100 million pieces)

Source: US Department of trade website

The data in Table 6 show that: from 2009 to 2015, the consumption of latex gloves, nitrile gloves and PVC gloves in the U.S. market showed an upward trend year by year. The overall consumption increased from 75.2 billion in 2009 to 114.4 billion in 2015, an increase of 52.19%. Among them, the consumption of PVC gloves increased from 37.8 billion in 2009 to 55.1 billion in 2015, with an increase of nearly 46%. The proportion of PVC gloves decreased slightly from 50.2% in 2009 to 48.16% in 2015.

The consumption of latex gloves increased from 31.6 billion in 2009 to 51.5 billion in 2015, with an increase of 63%, accounting for nearly 45% of the total consumption of gloves from 42.15% in 2009. Due to the high price, the consumption of nitrile gloves is relatively small, about 7% in 15 years. PVC gloves occupy the main market of gloves because of its price advantage. Because the price of latex gloves has been declining in recent years, the substitution effect in non essential fields is relatively small. However, due to the price of upstream raw materials, once the upstream price rise is transmitted to the downstream, the proportion of PVC gloves will increase.

3.2 demand forecast

According to the prediction of China Plastics Association, the global consumption of PVC gloves will reach 80 billion in 2010. By 2020, with the improvement of industrialization in emerging countries, the consumption will increase to 13 million, with a growth space of 62.5% in 10 years.

We measure domestic and foreign market demand according to industry classification.

3.2.1 international market

  • Medical industry

According to the data obtained from the World Health Organization (who), the medical system practitioners in the United States, Europe and Japan are shown in Table 7.

medical system employees in the United States

Table 7 medical system employees in the United States, Europe and Japan (unit: person)

Note: A: WHO World Health Statistics report 2015; B: WHO World Health Statistics report 2013; C: World Health Statistics report 2012 of the World Health Organization; D: World Health Statistics report 2011 of the World Health Organization; E: World Health Statistics Report 2006 of the World Health Organization Other medical staff include: public environmental health personnel, community health workers and health management personnel.

Because PVC gloves are widely used in all hospital fields except surgery, if the average consumption of PVC gloves per person per day is calculated according to the average consumption of 6 PVC gloves per person per day, the annual consumption of PVC gloves in the medical field of the United States, Europe and Japan is calculated The consumption of gloves will reach 32.939 billion, 17.593 billion and 4.637 billion respectively, totaling 55.169 billion.

  • Catering industry

According to the statistics of the American food and Beverage Association, in the spring of 2015, the total number of American restaurants reached 628720, with about 14 million employees. If the average person uses 6 PVC gloves per day, the annual consumption of PVC gloves in the U.S. catering industry will reach 30.660 billion.

According to the latest statistics of the Statistics Bureau of Japan’s Ministry of general affairs, there are 419663 restaurants in Japan, with about 2.7773 million employees. If the average person uses 6 PVC gloves per day, the consumption of PVC gloves in Japanese catering industry will reach 6.082 billion.

  • Laboratory

The federal government of the United States has more than 720 laboratories, employing about 100000 scientists and engineers in total. If the average person uses 6 PVC gloves per day, the annual consumption of PVC gloves in these laboratories will reach 219 million.

3.2.2 domestic market

  • Medical industry

According to the latest statistics of the national health and Family Planning Commission, the number of medical and health institutions (including hospitals, primary medical and health institutions, professional public health institutions and other institutions) has reached 99000, and the total number of health personnel in the country has reached 10.234 million. If the average consumption of PVC gloves per person per day is calculated, the consumption of PVC gloves in the domestic medical field in a year will reach 22.412 billion.

  • Pharmaceutical manufacturers

According to the data of 2015 annual report of food and Drug Administration of the people’s Republic of China, as of the end of November 2015, there were 5065 manufacturers of API and preparations in China. Based on an average of 500 employees / household and the average use of 6 PVC gloves per person per day, the demand for PVC gloves in pharmaceutical enterprises will reach 5.546 billion in a year.

  • Food production industry

According to the data of 2015 annual report on food and Drug Supervision issued by the State Food and drug administration, as of the end of November 2015, there were 131750 food production enterprises and 3288 food additive manufacturers in China. Based on an average of 100 employees / household and the average daily use of 6 PVC gloves per person, the demand of food production enterprises for PVC gloves will reach 29.573 billion.

  • Electronic information manufacturing industry

The electronic information manufacturing industry is an industry that develops and produces electronic equipment and various electronic components and devices. The working environment requires dust-free and anti-static to ensure that the products are not polluted. Therefore, workers must wear clean isolation clothes, anti-static slippers and gloves during production and operation. According to the data in 2015 electronic information industry statistical bulletin of the Ministry of industry and information technology, there are 19900 domestic electronic information manufacturing enterprises. With an average of 100 employees / household and the average use of 6 PVC gloves per person per day, the demand for PVC gloves in the electronic information manufacturing industry will reach 4.358 billion in a year.

Therefore, according to the above caliber calculation, the demand for PVC gloves is conservatively estimated to be more than 13 million.

3.3 release of demand

The United States, Europe and Japan are the main markets of disposable gloves. As a mature market, they mainly benefit from the legislation of relevant industries. According to the rigid requirements of legislation, the employees in related industries must wear relevant protective gloves. For example, the United States has the following provisions: in 1991, the occupational safety and Health Administration (OSHA) formulated regulations, requiring the personnel exposed to blood borne pathogens to take maximum safety protection measures, one of which is to wear gloves.

Since then, OSHA also requires other personnel exposed to contaminated and hazardous materials to wear gloves and other isolation measures to prevent pollution and infection more effectively.

In April 2003, the American nurse management agency specially prepared the nurse operation procedures, especially for the necessity of wearing gloves, what kind of gloves to wear, and the wearing time of gloves and other matters needing special attention.

In 2004, the national hygiene Foundation (NSF) issued the guidelines for on-site audit of employees in food processing enterprises, especially regarding whether operators wear gloves when contacting food as an important audit index. Special legislation in the United States stipulates that people in contact with food must wear gloves when processing ready to eat food.

There are also relevant legislation in China: the first and third paragraphs of Article 5 of the “guiding principles for occupational exposure and protection of HIV among medical personnel” issued by the Ministry of health clearly stipulates that medical staff must wear gloves when doing diagnosis and treatment and nursing work; the “occupational protection system for medical personnel” issued by the Ministry of health also stipulates that medical staff must wear gloves The second paragraph of Article 63, section 13 of the “code for the management of hospital infection” issued by the Ministry of health also clearly stipulates that medical staff must wear gloves during inspection.

The State Food and drug administration requires that pharmaceutical enterprises must pass GMP certification, and enterprises without GMP certification shall not engage in corresponding production and manufacturing work. According to the standards for inspection and evaluation of GMP certification issued by the State Food and drug administration, employees must wear gloves, isolation clothing and other products in the process of enterprise production and management. As far as the application field is concerned, if the electronic industry and food industry are added, there is a big market for disposable gloves in China. However, in addition to the requirements of medical care industry, the requirements of other industries have not been strictly observed, and the market needs to be cultivated. However, with the continuous upgrading of the health concept of the people and society, including many enterprises starting to export, the future standards will also be closer to the west, and the domestic market will be released at that time.

3.4 domestic PVC glove Enterprises

About 80% of the world’s PVC gloves are produced in China. Because the production area is separated from the consumption area, China is also a big export country of PVC gloves. In 2014, China’s export volume of PVC gloves reached US $1.232 billion, equivalent to about RMB 8.544 billion. The export volume and amount of PVC gloves in China in recent years are shown in Table 8.

export volume and amount of PVC gloves in China from 2010 to 2014

Table 8 export volume and amount of PVC gloves in China from 2010 to 2014

Data source: National Bureau of statistics, General Administration of customs

The brief information of domestic PVC glove manufacturers is shown in Table 9. At present, the largest VC glove manufacturer in China is lanfan medical, which has 137 production lines and has its own layout in the upstream paste resin. Other large companies are Shijiazhuang Hongrui, Yingke medical, zhonghongprin and other enterprises.

From the perspective of regional distribution, most of the production capacity is distributed in North China and North China, with Zibo, Shanghai, Suzhou, Shijiazhuang and other cities as the center of the industry. According to the disclosure of lanfan medical, North China may be due to the dry climate, moderate temperature and convenience of raw materials. The rise of industries in Shanghai and Suzhou may be driven by Taiwan funded enterprises. At present, there are more than 1200 glove production lines in China, but less than 700 production lines have been started.

major enterprises in the industry

Table 9 major enterprises in the industry

Source: public data collation

Note: some data need to be updated

PVC glove industry has a high degree of marketization and full competition. The industry competition shows the following characteristics: first, in the field of medium and low-end products, mainly the production of non-medical grade PVC gloves, the number of manufacturers is large, the production capacity is sufficient, the competition is fierce, the price is the focus of competition, and the cost control ability has become the key to the survival of enterprises; second, in the high-end product field represented by medical grade PVC gloves, China can supply medical grade PVC continuously and stably There are few glove enterprises, and the demand for medical grade PVC gloves is huge, which makes the competition in this field not as fierce as that in the field of low-end products relying on price competition.

However, due to the production control variables of medical grade PVC gloves and the complex technical requirements, the market competition is mainly the competition of technology, cost and production capacity between leading enterprises, which is mainly reflected in the cost advantage competition under the condition of meeting the higher quality standards. Advanced production technology, good after-sales service, perfect sales network and quick response management system have become the focus of competition, especially the cultivation and competition for large-scale and powerful international medical machinery distributors become the core of competition, so the market gradually concentrates on the dominant enterprises.

3.5 industry barriers

PVC glove industry is a labor-intensive industry with mature technology, but the industry competition is fierce. Only enterprises with strong technology development ability, perfect management system, scale cost advantage and high international market development and maintenance ability will have strong industry competitiveness. Industry barriers are embodied in the following aspects:

3.5.1 Technical barriers

PVC gloves are glove products based on impregnation process. The ability of manufacturers to integrate advanced production facilities, continuous optimization of manufacturing process and fine management is an important foundation to ensure the products have a high qualified rate and stability. This integration involves various factors such as raw materials, facilities, environment and personnel, as well as various technical know-how accumulated in the long-term production and operation process in terms of formula, production equipment and process control. For new glove manufacturers, it is impossible to break through the above technical threshold in a short time.

3.5.2 raw material barriers

The main raw materials of PVC gloves are PVC paste resin and plasticizer. The PVC paste resin for PVC gloves in China depends partly on import, while the plasticizer is made by petroleum refining. The fluctuation of oil price will affect the product cost. In this case, if we can maintain good cooperation with suppliers of PVC paste resin and plasticizer to obtain lower price, and be close to port or raw material suppliers, then glove manufacturers will be in an advantageous position in the competition.

3.5.3 qualification barriers

Most of the PVC gloves are sold to the international market. All the importing countries have certain access standards for PVC gloves, especially for medical grade gloves. The products must have good quality, meet the access standards of relevant countries, and pass the specified quality management system certification or product certification, such as ISO13485 certification, NSF certification, FDA certification, etc., before they can be allowed to enter the market of the target country, as shown in table 10.Therefore, the product quality, product grade and reputation of PVC glove manufacturers have become an important factor in determining the competitive position of enterprises in the industry. Good product quality and market reputation require enterprises to have rich production management experience and good quality assurance system. However, new enterprises can not compete with existing enterprises in terms of capital investment and experience accumulation.

In addition, with the continuous introduction and update of international industry quality standards, product technology and new certification projects, it is difficult for new enterprises to adapt to these changes in a short time, which also increases the height of qualification barriers to a certain extent.

related product certification in international market

Table 10 related product certification in international market

3.5.4 market barriers

Domestic medical grade PVC gloves are mainly exported. Enterprises need to actively expand international marketing channels and establish a stable marketing network. Establishing and maintaining a stable cooperative relationship with international large retailers is the key to expand the market and develop continuously. The qualification of suppliers is strictly approved by international large retailers, and the approval period is at least one year. In the process of examination and approval, the process flow, quality management system, working environment and business status of the manufacturer should be comprehensively and strictly reviewed. Many large retailers even begin to put forward higher requirements for the manufacturers in terms of social responsibility, environmental protection and health and safety system.Generally, the intention to establish a cooperative relationship can be reached after many times of repeated audit and rectification. Only after passing the small batch and multi batch supply test for a period of time can it become its official supplier. In order to maintain long-term and stable quality supply capacity, international major customers have to employ a third-party evaluation agency to evaluate the manufacturers every year to ensure the consistency of product quality and control system. The difficulty of cultivating and stabilizing core customers has become a big obstacle to enter the industry.

3.6 investment cost, investment payback period and price of PVC glove production line

According to Shandong lanfan’s 2010 “annual output of 2.6 billion PVC glove device project feasibility study report”, the total investment of the project is 169.2869 million yuan, the investment amount for production lines (24 single lines) is 131.8647 million yuan, the average price of each production line is 5.4941 million yuan, and the investment recovery period (static state) is 5.89 years (including construction period). The company also disclosed relevant data in its prospectus. From the investment point of view, the investment of a single production line has been about 7-9 million yuan. If we want to form a certain scale, we need at least 20 production lines. Plus the supporting working capital and infrastructure costs, we need at least 200 million yuan. There is a certain capital threshold. Moreover, the investment payback period is long, the price is low in recent years, and the gross profit rate is low.

Source: public data collation

 

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