Under construction and planned production capacity of approximately 6 million tons of PBAT industry competition will intensify in the future

Under the plastic restriction order, biodegradable materials such as PBAT and PLA have ushered in a broad market space, attracting a large influx of industrial capital.

Under the plastic restriction order, biodegradable materials such as PBAT and PLA have ushered in a broad market space, attracting a large influx of industrial capital.

At the same time, the biodegradable plastics sector has become a hot spot in the capital market, and related stocks have risen.

Intensive launch of new production capacity

It is understood that PBAT is obtained by polycondensation of terephthalic acid, adipic acid and butylene glycol.

It is understood that PBAT is obtained by polycondensation of terephthalic acid, adipic acid and butylene glycol.

Under the plastic restriction policy, PBAT production has accelerated in the industry, and listed companies such as Hengli Petrochemical, Fafa Technology, Wanhua Chemical, Dawn Co.

According to public information, Wanhua Chemical invested in a PBAT project with an annual output of 60,000 tons in Meishan, Sichuan, with a total investment of 360 million yuan.

Ruifeng Gaocai announced on February 2 that it plans to build the second phase of the 60,000-ton PBAT project.

In addition, in 2020, Ruifeng Gaocai and Shanghai Juyou Chemical Co.

According to statistics from the Huaan Securities Research Institute, as of January 29, the domestic production capacity under construction or planned reached 5.

Prices will remain high in the short term Prices will remain high in the short term

Under the influence of the upgrade of the plastic restriction policy, starting from the end of 2020, degradable plastic products such as PBAT and PLA have become very popular.

Under the influence of the upgrade of the plastic restriction policy, starting from the end of 2020, degradable plastic products such as PBAT and PLA have become very popular.

Wang Wenguang, Secretary-General of Shenzhen Polymer Industry Association, said that domestic PBAT demand was relatively stable before.

According to the statistics of the Institute of Biodegradable Materials, before 2019, the current price of PBAT per ton was about 26,000 yuan, which is about 20% higher than last year's price.

But analysts also said that with the commissioning of new production capacity, PBAT prices may fall in the future.

Wang Wenguang, secretary general of the Shenzhen Polymer Industry Association, said that from the market side, the current price of PBAT is about three times that of non-degradable plastic PE, and there is a demand for price reductions in the terminal; from the cost side, due to the relative price of raw materials The total cost of PBAT is the lower among mainstream biodegradable plastics, about 13,000 yuan/ton.

Integrated enterprises have higher safety margins Integrated enterprises have higher safety margins

Wang Wenguang said that the technical barriers of PBAT products are not high, and the cost gap between companies is not large.
After the new production capacity is put into production one after another, it may face certain market competition.

Wang Wenguang said that the technical barriers of PBAT products are not high, and the cost gap between companies is not large.
After the new production capacity is put into production one after another, it may face certain market competition.

The Huaan chemical team believes that in the case of homogeneous competition, the core competitive advantage of PBAT lies in the level of integration of the company.
Companies with a higher level of integration can avoid fluctuations in upstream raw material prices, ensure the supply of raw materials, and further reduce production costs.
Establish advantages in such aspects.
Both Wanhua Chemical and Dawn Co.
, Ltd.
have a layout in the upstream and downstream industrial chain of PBAT.

The Huaan chemical team believes that in the case of homogeneous competition, the core competitive advantage of PBAT lies in the level of integration of the company.
Companies with a higher level of integration can avoid fluctuations in upstream raw material prices, ensure the supply of raw materials, and further reduce production costs.
Establish advantages in such aspects.
Both Wanhua Chemical and Dawn Co.
, Ltd.
have a layout in the upstream and downstream industrial chain of PBAT.

Among them, Wanhua Chemical's own BDO production capacity is 100,000 tons/year, which is enough to provide raw materials for downstream PBAT plants of 60,000 tons/year.
For Dawn, PBAT is the raw material of the company's downstream degradable modified material products.
The company’s secretary of the board Wang Youqing introduced that the company’s degradable modified material products have a full order and a large number of downstream applications can ensure the company’s lower operating costs for the PBAT project.

Among them, Wanhua Chemical's own BDO production capacity is 100,000 tons/year, which is enough to provide raw materials for downstream PBAT plants of 60,000 tons/year.
For Dawn, PBAT is the raw material of the company's downstream degradable modified material products.
The company’s secretary of the board Wang Youqing introduced that the company’s degradable modified material products have a full order and a large number of downstream applications can ensure the company’s lower operating costs for the PBAT project.

Huang Kan, a chemical researcher at Wanlian Securities, believes that the PBAT track has a large space and the market share of existing companies is not high.
For the Lu stocks involved in it, there is a possibility of overtaking on a curve.
The main risk is whether the progress of PBAT production can meet expectations.
In addition, compared with the existing non-degradable materials, the cost of degradable materials such as PBAT is relatively high.
Large-scale applications still require government policies to overweight.
If the new plastic ban is not implemented well, it will be difficult for a large number of new production capacity.
Create stress.

Huang Kan, a chemical researcher at Wanlian Securities, believes that the PBAT track has a large space and the market share of existing companies is not high.
For the Lu stocks involved in it, there is a possibility of overtaking on a curve.
The main risk is whether the progress of PBAT production can meet expectations.
In addition, compared with the existing non-degradable materials, the cost of degradable materials such as PBAT is relatively high.
Large-scale applications still require government policies to overweight.
If the new plastic ban is not implemented well, it will be difficult for a large number of new production capacity.
Create stress.