During the first half of 2011-2014, the price of BDO industry was at the peak, and the annual price was above RMB 13500 / ton, especially in 2011 when the price was as high as RMB 25000 / ton. The main reason is that the domestic device load was low due to factors such as poor start-up of new devices, shutdown and maintenance, raw material supply, catalyst and device failure, which made the BDO supply continue to be tight, and the market price rose accordingly.
After the second half of 2014, with the continuous expansion of domestic BDO capacity, the capacity expansion speed of downstream industries was slower than that of raw materials, and the demand was low; however, BDO capacity was in a state of excess, and factories gradually went to fight a "price war" to compete for market share. In most years, the price fell below 10000 yuan / ton, once to 7200 yuan / ton (from the end of March to the beginning of April 2016).
In 2017-2018, BDO prices rose to more than 10000 yuan due to limited transportation, short-term tight supply and slight increase in downstream, but the annual fluctuation was not large.
In the first half of 2019, due to the impact of safety inspection and trade friction, the downstream construction started to decrease, the demand decreased, and the price dropped significantly. In the second half of the year, due to routine maintenance or sudden shutdown of the plant, the overall start-up was low, and the spot supply was tight; meanwhile, in November, the domestic BDO industry carried out reform to implement linked settlement. In November and December, as an important transitional period, the factory was determined to support the market, and the market rose substantially.
In the first half of 2020, due to the spread of the epidemic, the accumulation of factories and other negative factors, the price will drop sharply. In the second half of the year, some domestic plants were shut down for a long time or the burden was reduced, and the inventory of each factory was low; while the demand of downstream industries recovered, and the consumption showed a certain explosive growth, which led to the shortage of BDO spot and the price skyrocketed, reaching a new high since 2014.
Source: Institute of biodegradable materials
OKCHEM PLA, PBAT and PBS Distribution Project
OKCHEM is the strategic partner of Anhui BBCA (expected to be the largest PLA producer in China) and Xinjiang Blue Ridge Tunhe (the largest PBAT producer in China) to look for buyers and partners globally. If you want to join us in this project, please contact us at firstname.lastname@example.org. You may also make the application online at: https://www.okchem.com/agent/detail/degradableplastics/oem
1. About our distribution project and our partners
OKCHEM Chemicals Distribution Product List and FAQ
PLA, PBAT and PBS included in OKCHEM Distribution Project
FAQs for biodegradable plastic materials
Xinjiang Blue Ridge Tunhe is leading globally in the production of degradable materials
Anhui BBCA Kicked off the 2nd Phase Production for its 300 kt/a PLA Project
2. About product background introductions
What Does Biodegradable Mean?
Bioplastics, Biodegradation and Bio-based plastics
Comparison of biodegradable materials PLA, PBAT, PHA and PBS
Is PLA biodegradable unconditionally?
Biodegradable plastics — Polylactic acid (PLA)
What’s the Difference: Biodegradable and Compostable?
Harmonised standards for bioplastics products in EU
Certificates: reliable proof of biodegradability by independent institutes
PLA or PBAT, which will be more popular in the future market?
3. About market analysis and new development
PBAT price in China continues to rise due to the explosive price increase of its main raw material: BDO
PBAT raw materials: BDO under insufficient capacity and price increase by 50%; PTA and AA with overcapacity
Anhui Ruihong New Material Kicked off the construction of project with 25 kt/a of PVA, PLA, PBAT and PBS
China’s Kanghui Petrochemical kicked off its production of 33 kt/a PBAT/PBS on December 25
China's Hengli Petrochemical Officially Signed Production Project of 600 kt/a PBS on Jan 19, 2021
China’s Hengli Petrochemical adds another 300kt/a PBS on Feb 1, 2021, expecting a total capacity of 933kt/a PBS
New development in PLA: Durable new PLA cup can hold boiling liquids around 140 °F (60 °C)
ECP recently introduced as promising biobased compatibilizing agent for PLA/PBAT blends
Brief Highlights of PBAT and Its production in China
The state of the bioplastics market updated by European Bioplastics (EUBP)
Biodegradable product tradeshows: 2021 China International Biodegradation & Plastic Products Exhibition
Analysis of Chinese export on PBAT and PBS from 201901 to 202011
Production capacity of PLA in China expected to reach 3.3 million tons in the coming 5 years