中国生物基材料季报

Welcome to the Bio-based Material Quarterly Newsletter Q3 2023.

Policy

In this quarter, China released documents adding provisions related bio-based/biodegradable materials, namely, the Guidance Catalogue for Industrial Restructuring (2023 Version, draft for public comment), the Work Plan for Steady Growth of Light Industry for 2023–2024 and the Work Plan for Steady Growth of Petrochemical and Chemical Industries for 2023–2024.

Market dynamics & company performance

Hisun Biomaterials, Kingfa, Cathay Biotech and Jindan Technology all reported dwindling net profits in H1 2023. Cathay Biotech notified that it was putting off startup of the 500,000 t/a bio-based pentamethylene diamine (PDA) and 900,000 t/a bio-based polyamide (PA) project.

In the polylactic acid (PLA) manufacturing, Pliith Biotechnology's 50,000 t/a PLA production project came on stream; Dehong Tech, Ma'anshan Tong-Jie-Liang Biomaterials and Xinjiang Dongyu saw their PLA production project making progresses; New Tuoyang Bio partnered with HighChem for high-end PLA development; COFCO Biotech had the 30,000 t/a lactide project approved; and East China Engineering Science and Technology proclaimed breakthrough in producing lactide.

More are included: Tianjin Nine Dragons completed the 1st-phase bio-based chemical fibre capacity reconstruction whose production is to replace the existing waste paper capacity; Nantong Sateri's 1st-phase construction of the 200,000 t/a solvent-spun cellulose fibre project entered operation; Tsinghua Smart signed agreement to build 20,000 t/a 1,3-propanediol (PDO) project in Guangxi; HANVO Safety proposed a 110,000 t/a biodegradable polyester rubber project; Germany-based Carbonauten raised plan to set carbon-negative materials plant and China headquarters in Chibi, Hubei; Ningbo Institute of Materials Technology and Engineering, Chinese Academy of Sciences (NIMTE) declared success in pilot-scale production of 2,5-furandicarboxylic acid (FDCA); Zhuhai Kingfa and Suzhou Juwei Yuanchuang entered partnership to industrialise straw-derived succinic acid (SA); and Sanshu Bio closed pre-Series A funding round of tens of millions RMB for plant-based new materials development.

Price

In the period of Q3, PLA prices were on a slow decline, while the PHA prices have remained flat.

The USD/CNY exchange rate in this newsletter is USD1.00=CNY7.1788 on 1 Sept., 2023, sourced from the People's Bank of China. Unless otherwise specified, all the prices mentioned in this newsletter will include the VAT.