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In H2 2012, China's biomaterial industry may be still in a rapid development stage and enjoy more.
In H1 2012, China’s GDP growth rate is 7.8%, a little higher than that of the target of 7.5% for 2012, but economists think that 7.5% is just the government's baseline but not the final achievement, so the Chinese government may release more positive policies. In H1 2012, China has already cut the benchmark interest rates for financial institutions, which is favorable to most biomaterial enterprises under expansion. At the same time, almost all the Twelfth Five-Year Plans including the New Material Plan or the Chemical Fiber Plan related to biomaterial reveal a signal that biomaterial will be the main development direction in China.
Except for the economic policies, the consumption market and raw material are also cheering. In H2 2012, the price of main raw materials of biomaterials, like cassava, corn, potato, sugarcane, etc., will not rise sharply thanks to the large planting areas and suitable weather. Meanwhile, Guangzhou, Shanghai, Beijing and many other cities are vigorously promoting garbage classification, which can directly enlarge the market of degradable plastic. In response, the sense of environmental protection will spread rapidly, which will help China transfer from a biomaterials production base to a consumption market.
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