The enthusiasm of corporate investment is cooling down. Most of the proposed projects are suspended.

Statistics from the National Bureau of Statistics show that in the first quarter, the fixed assets investment in the rubber and plastic products industry was 90.2 billion yuan, and the investment growth rate dropped 22.8% from the same period of last year, down 12.3% from the end of last year. In 2014, the total new capacity of the five general plastics industries exceeded 10%, while the average profit rate of the plastics industry was 4.9%, which was less than the average of 5.45% of the other 17 light industry in the country.

The growth rate of production capacity is greater than the demand.

Even so, due to the rapid expansion of production capacity in previous years, the situation of oversupply is still difficult to change. At present, China's plastic consumption has surpassed that of the United States, ranking first in the world, with an annual sales volume of about 80 million tons. With the increase in demand, China's polyolefin capacity has expanded rapidly in the past two years. Taking polypropylene as an example, the production capacity in 2013 was 13 million tons. By 2015, it has increased by 9 million tons, with an average annual growth rate of 30%, while the domestic annual demand growth rate is less than 4%.