The contradiction of oversupply is quite prominent: ton bag manufacturers have relatively little investment, low technical content, low entry barriers, many blindly launched, many small and medium-sized enterprises, weak innovation capabilities, and few independently innovative products. Product assimilation is particularly serious. Therefore, supply seriously exceeds demand and leads to price wars, and there is little profit margin. Due to the excess production capacity of products, it cannot be released.
The plastic weaving industry is very fragile and needs to be integrated: the ton bag product industry has no qualifications to negotiate prices with upstream raw material companies, no room for negotiation with downstream companies, and disorderly competition itself, making the plastic weaving industry very fragile and in urgent need of integration. During the 15th Five-Year Plan period, there were more than 5,000 plastic weaving companies nationwide, but only ten of them had annual sales of more than 100 million yuan, and only more than 1,000 had annual sales revenue of more than 5 million yuan. The others were small and medium-sized enterprises with backward equipment and technology, poor product market competitiveness, and greater risks in the fierce market competition. Due to the increase in raw material prices, product prices could not rise synchronously, making many small container bag companies unable to bear it, and they stopped production, switched production or closed down.