Bio-based Material China Quarterly Report

Welcome to the Bio-based Material Quarterly Newsletter Q1 2024.

Policy

In Q1, China issued the 2024 Directory for Guiding Green and Low-Carbon Transformation of Industries and Guiding Opinions on Accelerating Green Development of Manufacturing Industries, to facilitate bio-based sectors' development.

Market dynamics & company performance

Cathay Biotech expected declines in both revenue and profit in 2023; Zhongke Biotech warned of a larger net loss for the year; while Hisun Biomaterials reported over 50% growth in pure polylactic acid (PLA) production and sales, despite rising revenue and falling profit.

There are updates in PLA-related capacity construction, including COFCO Biotech's 30,000 t/a lactide project, Jiangxi Keyuan's 200,000 t/a lactic acid and 130,000 t/a PLA project (phase I), and Linyi Xinyuan's 300,000 t/a bio-based new material (PLA) project, and Shanghai Tong-Jie-Liang's 200,000 t/a PLA project.

In the succinic acid (SA) manufacturing, Huaheng Biotech started continuous production for bio-based SA and 1,3-propanediol (1,3-PDO); Liaoning Kingfa, Xingguang Biotech and Shandong Xiaowei announced progresses in pushing their construction.

In addition, Phabuilder plans to build up PHA capacity, 30,000 t/a in Yichang of Hubei and 2,000 t/a in Ili of Xinjiang. Shandong Tianrunhe was approved for its 15,000 t/a 1,3-PDO and derivatives project; Nanjing Chemical, Baoding Swan and Genertec Advanced Materials gained progresses in their Lyocell fibre projects; Guangxi Anhongda is pushing forward 1st phase of 500,000 t/a mulberry branch-derived fibre project; Xinxiang Chemical disclosed plan to add 30,000 t/a biomass-derived cellulose fibre capacity in Xinjiang; Tongling Leaf is to build 20,000 t/a production line for FCDA and the downstream materials; Zhongke Qichen's 100,000 t/a bamboo fibre construction project was given a greenlight for construction; and Huangpu Institute of Green Advanced Materials' 1,000 t/a bio-based polyester elastomer (BPE) pilot project entered second publication. Also, Zhongke Baiyijin gathered RMB10+ million funding to scale up 1,3-PDO production, and technical development and marketing for ethylene glycol (EG); Zhuhai MedPHA raises RMB10 million+ to fast track R&D, production and sale of PHA pipeline products.

Price

In Q1, PLA and PHA prices have remained stable.

The USD/CNY exchange rate in this newsletter is USD1.00=CNY7.1059, sourced from the People's Bank of China on 1 March, 2024. Unless otherwise specified, all the prices mentioned in this newsletter will include the VAT.