Industry coordination BDO reminds PBAT to pay attention to cost control

In the face of the increasingly serious plastic pollution problem, the world is actively promoting degradable materials, but in 2021, the degradable materials industry will be in the policy introduction period, and policy continuity will still be the driving factor for degradable materials in the short term

A senior industry person in Shandong told reporters: "At present, the downstream industry is not active in stocking due to the high price of raw materials, and the recent price trend of PBAT and other materials is not very optimistic

It is worth mentioning that the reporter learned from an interview that BDO and PBAT factories recently held a coordination meeting organized by relevant national ministries and industry associations.

Materials are at a high level, downstream demand is sluggish, PBAT corporate profits are upside down

Among the degradable materials, the bio-based biodegradable material with the most mature technology is PLA, and the petroleum-based biodegradable material is PBAT.

In terms of price, whether PLA or PBAT, the price is currently at a historically high level, and industry insiders believe that the high price inhibits downstream demand

PBAT is a new petrochemical product.

Regarding the trend of PBAT in the first quarter, Zhuo Chuang Information analyst Zhang Chunyan told the Financial Associated Press: "The new production capacity is still output in the first quarter, and it is expected to add 200,000 to 300,000 tons, but downstream demand is sluggish, and companies will prefer new projects to test runs.

Zhang Chunyan said: "BDO's downward price reduction will make the profits of PBAT companies rise, but the current operating rate of the downstream operating rate of about 40% is still unable to significantly boost market demand.

In 2021, the expansion of PBAT is relatively large, and there are no major technical barriers in the industry.

The aforementioned industry source told reporters: "It is not realistic to achieve large-scale technological upgrades in the short term, but through refining and chemical integration, reducing energy consumption, reducing residual waste, and improving the level of comprehensive utilization is the best way to reduce costs

At present, there are already integrated enterprises in the industry with strong competitive advantages, such as: Wanhua Chemical, Hengli Petrochemical, Tongcheng New Materials,

The core technology of lactide has been conquered

In addition to PBAT, another industrialized degradable material, PLA, has relatively stable overall production capacity due to its high technical barriers.

"Because of the extremely high technological barriers of lactide, the few companies that can produce lactide are basically self-produced and used, which makes lactide a key link that restricts the profitability of PLA production enterprises," said the aforementioned industry insiders.

The hot market situation has attracted some corn deep processing and biochemical companies to turn their attention to the blue ocean market of PLA

The domestic EVA industry leader, Lianhong Xinke, will also set its sights on the field of degradable materials in 2021.

Huitong Co.

The PLA production line of Jilin COFCO Biomaterials Co.
, Ltd.
, a subsidiary of COFCO Technology, has achieved mass production.
The production line is designed to produce about 30,000 tons of PLA raw materials and products annually
.
The domestic lactic acid leader Jindan Technology currently has a 1,000-ton polylactic acid pilot production line
.