Although the utilization of PPS has made great progress in China, there are still many problems. First, the technical level is low. Second, there is still a gap between the product category and high-end products abroad. Due to technical reasons, domestic research bottlenecks in PPS modification and other aspects are relatively high, which also limits more and wider applications of products. As a special engineering plastic, the output of modified PPS is much less than that of other engineering plastics and general plastics. In addition, the quality of domestic modified PPS still lags far behind that of imported modified PPS. In addition to the unstable formulation of domestic modified PPS, the unstable quality of domestic resin products is also a very important factor. In addition, the domestic PPS market demand has also continuously promoted the active research and development of domestic PPS enterprises, and has formed a certain production capacity, changing the previous situation of completely relying on imports. However, China's PPS is still in a big gap, and there are still problems in technology, such as few product varieties, few high function products, and urgent need to expand capacity.
The productivity utilization rate and production and marketing rate of domestic PPS production enterprises are relatively low, and they are in a situation of general loss. In addition, in order to suppress the development of domestic industries and further seize the market share in China, foreign enterprises represented by Japan, the United States, South Korea and Malaysia, on the one hand, continue to increase the export of PPS products to the Chinese market through low price dumping; on the other hand, they also use their market position to control the circulation of imported products through their affiliates in China, thereby affecting the Chinese market. According to the announcement of the Ministry of Commerce, in 2018, China's PPS demand was 54544 tons, imports 32091 tons, and the degree of dependence on imports was 58.84%, while the domestic market share of manufacturers and their affiliates in China in Japan, the United States, South Korea, and Malaysia was 54.31%, and their sales prices in China were far lower than their domestic prices (dumping range 40% - 105%). Therefore, the operating rate of domestic PPS enterprises was low (average 40%), and the production and sales rate declined significantly in recent years, As a result, two leading domestic enterprises, Guang'an Jiuyuan and Dunhuang Xiyu, stopped production.
With the increasingly prominent demand for lightweight and low-cost automobiles, the application of PPS with good mechanical performance, high temperature resistance and corrosion resistance in the automobile industry is becoming increasingly important. Vehicles will use more special engineering plastics to replace metal parts. As the requirements for precision of electronic products and instruments are constantly improving, PPS is also widely used. Some of China's PPS industry has reached the international leading level through independent research and development and foreign introduction. At the same time, with the continuous progress of PPS technology, the performance of PPS continues to improve, which can meet more downstream industries, and the application in existing downstream industries is more extensive, and the market space is broader. The expected output of PPS products in China will reach 350200 tons by 2025.
In order to protect the domestic PPS industry, on October 16, 2020, the Ministry of Commerce issued Announcement No. 45 of 2020, announcing the preliminary determination of anti-dumping investigation on imported PPS (PPS) originating in Japan, the United States, South Korea and Malaysia. Imported PPS originating in Japan, the United States, South Korea and Malaysia were subject to dumping, and the domestic PPS industry suffered material damage, and there was a causal relationship between dumping and material damage, Therefore, it was decided to implement temporary anti-dumping measures in the form of bond against imported PPS originating in Japan, the United States, South Korea and Malaysia.