Bio-based Material China Quarterly Report

Welcome to the Bio-based Material Quarterly Newsletter Q2 2022.

Policy

In Q2, China rolled out its first systematic Plan for Bioeconomic Development during the 14th Five-year Development Plan Period (2021-2025); in addition, the National Development and Reform Commission and the Ministry of Ecology and Environment jointly issued the Key Tasks of Plastic Pollution Management for 2022, followed by a series of launches of local plans in provinces and cities.

Market dynamics & company performance

eSUN started up an easily recyclable, degradable new materials master project; and BBCA Group was also expanding operation in bio-based material sector across China along with Huafon Group and Huitong Technology accelerating layout in bio-based and biodegradable material sectors.

Multiply PLA projects are advancing in China including the ones of Golden Far East and Jiangxi Keyuan preparing for construction starts and that of Shandong Guoan, Shandong Kunxiang, Jiangsu Shengpuli and Ma'anshan Tong-Jie-Liang Biomaterials under construction. On the other hand, Kingfa's net profit tumbled in 2021 and Q1 2022 while Jindan Technology's revenue and profit marked significant growths; COFCO Biotech came with booming financial results for 2021 and a successful trail run in its 1,000 t/a PHA project launched in June.

There are updates on other bio-based material projects including Anhui Huizhu's 600,000 t/a bio-based new material project, Qinghai Tianjinze's thermoplastic starch-based material production project, Huaibei Chuangxin's 5,000 t/a bio-based SA project, Tidetron Biotech's 1 million+ t/a bio-based PBS project, and Huaheng Biotech's diacid- and diol-oriented production project; moreover, Yuanli Chem probes the BDO market in Europe and Zhuhai MedPHA closed USD10.5 million+ financing for product innovation and marketing campaigns in China and overseas.

Price

In the second quarter of 2022, the downtrend in PLA prices sustained while PHA was able to stand firm.

The USD/CNY exchange rate in this newsletter is USD1.00=CNY6.6651 on 1 June, 2022, sourced from the People's Bank of China. Unless otherwise specified, all the prices mentioned in this newsletter will include the VAT.