The biodegradable industry is booming

The "most stringent "plastic ban" in history" that took effect across the country on January 1 this year has attracted more and more attention to the biodegradable industry

Wang Lingen is the sales director of Zhejiang Botanical New Materials Co.

Huge alternative market

In January 2020, the National Development and Reform Commission and the Ministry of Ecology and Environment jointly issued the "Opinions on Further Strengthening the Treatment of Plastic Pollution" (hereinafter referred to as the "Opinions"), which is called the "Strict Plastic Restriction Order" and is also regarded as the "Plastics Ban Order" , Among them, it is mentioned that by the end of 2020, the catering industry nationwide prohibits the use of non-degradable disposable plastic straws

Subject to the ban, the milk tea shop took the lead in getting to the forefront

In many fields, the substitution effect of biodegradable plastic products is also accelerating

The market potential of biodegradable products is huge

"Flour is more expensive than bread"

Compared with paper products, biodegradable plastics have more prominent advantages in replacing traditional plastics

The relatively high price is even more difficult to collect in the industry boom, and the price increase of raw materials has also begun to plague the entire degradable mid- and back-end industrial chain

Plant source companies mainly modify PBAT, PLA and other degradable materials, and then provide them to product factories to make straws, forks, spoons and other products

Zhou Hao, a broker in degradable materials, also has a deep understanding of this

"As a result, the price of raw materials has been hyped up

Companies that are reluctant to make "bread" include a plastic manufacturing company in Qingdao

Market regulation

Insufficient raw material production capacity, crazy price increases, and mid- and downstream companies may lose money, or stop production, or wait and see, all of which have gradually restricted the biodegradable industry

The China Circular Economy Association has been deeply involved in the research and formulation of the 2020 Opinions.

Chen Ji, director of the Institute of Industrial Economics of Capital University of Economics and Business, also told reporters from Beijing Business Daily that the price increase of raw materials has a lot to do with market expectations.

This year, listed companies in the biodegradable industry, such as Kingfa Technology, Ruifeng High Materials, Hengli Petrochemical, and Jindan Technology, have increased their production capacity expansion plans

"As long as production capacity comes up, price costs come down, and when the entire industry is closed-loop spread to consumers, the price will be lower and the market will be able to eat.
This is a normal development direction
.
I estimate that the price will stabilize may need to wait until eight or nine.
Month
.
" Zhou Hao said
.