For the plastics industry in China, the slowdown may be over, but the rebound is not in sight
If an optimist sees a glass half full and a pessimist sees it half empty , what do you call someone who can not decide what they see ?
You can call a business of trying to decipher the plastics manufacturing environment in China today.
Reports late November and plastics companies traded analysts pointed to a "shameful " and " uncertain " picture , with suggestions the worst may be over slowing this year, but without solid offensive view.
For example, China 's second largest manufacturer of plastic machinery , Chen Hsong Holdings, said on November 27 that sales in the country increased only 4% for the six months ended 30 September.
Easier credit in China in recent months did bring a small recovery , but the company said the plastics factories remained cautious investment and looking to the government for the signals.
" A tight monetary policy adopted by the new central government of China - crucial for long-term economic stability - will inevitably lead to short-term pain ," said company based in Hong Kong. "The market in China during the second half of this financial year continued to be veiled in uncertainty, depends largely on the direction and degree of tightening credit policy of the Central Government . "
Injection molding company of Hong Kong Karrie International Holdings half year saw sales fall 21% in the plastics molding and metal parts division , which led the company said in its earnings report November 28 I was coming up investment in robots and automation.
And the plastic toy maker Lung Cheong International Holdings said on November 28 that sales of half a year fell 19 %, which is attributed to the economic problems worldwide .
It was not all bad news. Others reported better results.
L. K. smaller rival Chen Hsong Technology Holdings said sales in the division of plastic machinery rose 13 % on strong demand in China, and the dye and plastic mixer engineering Ngai Hing Hong said that healthy sales in China were main engine that drives revenue by 14%
to a record HK $ 1.86bn ( € 177m ) in the year ending June 30.
Ngai Hing Hong But just held , making a cautious tone about the future amid challenges in China and Europe.
"With the eurozone crisis unresolved ... and the ongoing slowdown in economic growth in China , the group will continue facing the challenges in the second half of 2013," he said.
"However , the recovery of the U.S. economy has helped stabilize exports to China , which management believes will present opportunities for the world market and the price of raw materials should be stable. "
Examining China 's manufacturing industries on an analysis of 27 November the Manufacturers Alliance U.S. based for Productivity and Innovation said the picture was "shameful" .
" While recent Chinese data have suggested a bottoming of the sharp slowdown in Asia 's largest economy , there is a definite sense of recovery in the near-term horizon ," according to MAPI. "Economic growth stabilized in the third quarter primarily due to a gradual recovery in exports and public investment . "
MAPI predicted that production in China could see a moderately slower growth this year of 9.2 % to 9% in 2014 as global GDP growth fell from 7.3 % this year to 7 , 1% by 2014.
Major trade group Plastics country , the Association of Plastics Processing Industry of China, estimated in early November that the industry grew by 5 % in the first nine months of the year , a significant slowdown from double-digit increases in years.
" Such a muted forecast likely portends a prolonged period of slower growth as the country faces a sluggish world economy, increasingly difficult demographic challenges affecting the supply of labor " and the need to rebalance its economy towards consumption domestic private, MAPI said.
Still, plastics companies reporting financial results continued investments in new capacity, and seeking long-term opportunities . And even with the slowdown , the growth of the plastics industry in China still larger than other major economies of the world plastics .
LK was building a new production base in Zhongshan , Guangdong Province . Ngai Hing Hong said it will continue expanding its sales network in mainland China, where significant resources are focused in recent years , and said he expected to benefit from increased Chinese exports and a gradual recovery in the U.S. economy .
And Hsong Chen said he had nearly completed a previously announced expansion space 88,000 m² factory in Shenzhen , to give more capacity in ultra - large tonnage presses and help them achieve what he called a leadership position in this sector.
He said he planned to submit an injection molding machine of 6,500 tons , the largest yet made in Asia , to a customer in early 2014 .
International sales of Chen Hsong also suffered in the period. He said he saw encouraging signs of their efforts to grow in markets such as Brazil and Europe, but noted that overall international sales still fell by 7 % in the first half due to the depreciation of currencies quickly in some major developing economies .
New Southeast Asian currencies in the broader market fell by 10% against the U.S. dollar in the period, the company said . But let Chen Hsong suggesting the status quo would not be so bad.
" The group is of the opinion that the GDP of China should maintain its current growth rate of 7.8 % and that, barring unforeseen circumstances , we expect stability in the business development group can be guaranteed ," said the company.