Happy New Year | Year of the Dragon 2012
Chinese New Year is officially over and it’s now the year of the DRAGON! First, I want to wish all the readers and supporters of recycledplastic.com a happy new year and wish everyone a successful business for 2012! 2011 has been a great year for me and I’m crossing my fingers that 2012 will be even better. For those that know me personally, I’m having another child (and I just found out it is going to be another boy).
The end and beginning of each year always has detrimental effects on the plastic recycling trade in China. For all those dealing with companies in China, October to February is always going to be rocky. This is because there is a week long holiday in October (National Week), Christmas and New Year in December, and Chinese New Year in January/February. On top of all the national holidays, environmental licenses expire on December 31st making the import of recycled goods unstable and usually more expensive. Its therefore important to time your shipments so you don’t accrue unnecessary fees at the ports.
Even now, environmental license quotas are tight and the government has increased the necessary paperwork required to renew licenses. The Chinese government is doing its job for making the average trader suffer, yet rewarding the larger, more established recyclers.
As the year just started, plastic prices is still somewhat unstable and while buyers have already come to my facilities to purchase, I still waiting for prices to settle before selling inventory. The plastic market recovers a bit now and peaks between March and June. When summer hits, electricity becomes an issue and some manufacturers are placed on schedules where they get electricity only 3-4 days out of the week. With this being said, it’s the perfect time to setup long term deals now and I’m already crossing my fingers for some of my larger deals to go through!
Lastly, I want to end by saying that I’ve learned a lot in 2011 and have learned some very valuable lessons. If you’re new to the recycling business, don’t give up, you’ll get there someday. Be smart, learn from your mistakes, try a new direction, and cross your fingers.