Why did plastic products still face insufficient supply and demand?

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Insufficient Supply and Demand Persist in Plastic Products Sector

Huo Lihui, a statistician at the National Bureau of Statistics, indicated that certain sectors, including plastic products and ferrous metal smelting, continued to experience insufficient supply and demand. This situation persists despite an overall pickup in China's factory activity in June, which saw the manufacturing purchasing managers' index (PMI) rise to 50.3.
Specific Sectoral Challenges Noted

The official data highlighted that while overall market demand showed improvement, particularly in electronics, special equipment, and food processing, specific industries faced ongoing imbalances. The plastic products sector, along with ferrous metal smelting, was explicitly mentioned as areas where supply and demand did not align sufficiently.
Broader Economic Headwinds

The challenges within the plastic products sector occur against a backdrop of broader economic uncertainties affecting China. These include the lingering impact of global energy price hikes due to geopolitical events, such as the conflict in the Middle East, which has disrupted shipping routes like the Strait of Hormuz.
Dependence on External Factors

While the June PMI readings suggested a regaining of economic momentum, this growth remains significantly reliant on exports and AI-related technology. The overall economic performance is heavily influenced by external demand, indicating that sectors like plastic products may be more susceptible to global economic fluctuations and supply chain dynamics rather than solely domestic market forces.

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Why did plastic products still face insufficient supply and demand?

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