Bio-based Material China Quarterly Report

Welcome to the Bio-based Material Quarterly Newsletter Q1 2022.

Policy

Provinces accelerate construction of "Zero-waste Cities" in response to the Work Plan for Construction of "Zero-waste Cities" during the "14th Five-year Plan" Period; Nanle County released the EIA report of overall development plan of biomass industry park and companies located within are expanding their bio-based material capacities.

Market dynamics

In Q1, multiple bio-based material projects were carried forward, benefiting development of the bio-based degradable material PLA industry: BBCA Biochemical is pushing layout in PLA industry; Wanhua Chemical has fostered its planning in the area of bio-based and biodegradable materials; A number of PLA projects also are underway, including that of Shandong Tongbang, Jiangxi Keyuan, Pliith Biotechnology, Ningxia Qiyu and Huitong Technology; and there are updates on Jingliang Longjiang's LA project and Langjing New Material's lactide project.

Company performance

COFCO Biotech marked over 80% of YoY growth in net profit while Kingfa saw notable drops—the two companies are active players in the area of biodegradable materials; Cathay Biotech proposed to reallocate funds to bio-based nylon project; Bluepha and Weigou Workshop closed new rounds of financing for PHA capacity expansion; Levima Green's 50,000 t/a PPC project started construction work as details of the bio-based projects of Jinzhu New Material and Panda New Material were publicised; GS Biotech's cooperative agreement for over one tonnes production of FDCA may be a booster shot for HMF downstream bio-based material market.

Price

In the first quarter of 2022, PLA underwent a downtrend while PHA was able to stand firm.

The USD/CNY exchange rate in this newsletter is USD1.00=CNY6.3014 on 1 March, 2022, sourced from the People's Bank of China. Unless otherwise specified, all the prices mentioned in this newsletter will include the VAT.