Bio-based Material China Quarterly Report

Welcome to the Bio-based Material Quarterly Newsletter Q4 2021.

Policy

The Chinese MIIT published a drafted Directory for Key New Materials to solicit public opinions, some bio-based materials listed. Moreover, some provinces introduced policies related to promoting bio-based materials and developing the bio-based materials industry chain.

Market dynamics

Hisun Biomaterials publicised its IPO prospectus (application draft) proposing to go public on the SSE STAR Market.

BBCA Biochemical completed the declaration for its 100,000 t/a PLA project along with the signings of a strategic cooperation framework agreement with Guofeng Plastic and a cooperation agreement for PLA chemical closed-loop recycling technology project with Sichuan University.

Since late Sept., 2 PLA producers have started construction of their PLA project and 3 are advancing the project process.

In Q1-Q3, Cathay Biotech, COFCO Tech, and Jindan Technology reported increased revenue and net profit, while Kingfa saw decreased net profit.

Enterprise

Bluepha's 25,000 t/a PHA industrialisation project, Xinjiang Tianlu's 10,000 t/a cellulose fibre project, and Shandong Yanquan's 20,000 t/a nanocellulose project were published recently.

COFCO Tech launched a 30,000 t/a lactide project to produce PLA raw materials.

Cathay Biotech revised the implementation location and subject of its “Bio-based Polyamide Engineering Technology Research Center” investment project.

Zhongyuan Dahua Group will soon complete the 1,000 t/a straw sugar-based EG pilot project.

Price

In Q3, prices of bio-based materials such as PLA and PHA mostly trended upwards and then downwards.

The USD/CNY exchange rate in this newsletter is USD1.00=CNY6.3693 on 1 Dec., 2021, sourced from the People's Bank of China. Unless otherwise specified, all the prices mentioned in this newsletter will include the VAT.