Industry Observation | The price of degradable plastic and explosive PLA remains high, raw material lactide may become the focus of competition in the PLA industry
PLA is hard to find, and Lianhong, Huitong, GEM and other companies are actively expanding production. In the future, companies that master lactide technology will receive full profits. Zhejiang Hisun, Jindan Technology and COFCO Technology will focus on the layout.
According to the financial association (Jinan reporter Fang Yanbo), with the advancement of the dual-carbon strategy and the implementation of the plastic restriction order, traditional plastics have gradually faded out of the market, the demand for degradable materials has grown rapidly, and products continue to be in short supply. A senior industry source in Shandong told the Financial Associated Press, "Degradable materials have a very broad market prospect due to the advantages of low carbon and environmental protection. Among them, biodegradable materials represented by PLA (polylactic acid) are expected to achieve degradation. Speed, industry threshold , production technology and other advantages take the lead in breaking the game.”
Cailian News reporter interviewed a number of listed companies and learned that the current demand for PLA is strong. In the current situation of short supply, the market price of PLA has been rising all the way, and it is still out of control. At present, the market price of PLA has risen to 40,000 yuan/ton. Analysts predict that the price of PLA products will remain high in the short term.
In addition, the aforementioned industry insiders said that due to the technical difficulties in PLA production, especially the lack of effective industrial solutions in the synthesis technology of the upstream raw material lactide, the PLA, which can open up the entire industry chain technology, is expected to share more industry dividends.
Strong demand for PLA materials
Polylactic acid (PLA) is also known as polylactide. It is a new type of bio-based material obtained by dehydration polymerization of lactic acid as a monomer. It has the advantages of good biodegradability, thermal stability, solvent resistance and easy processing. Widely used in packaging and tableware, medical and personal care. , film products and other fields.
Currently, the global demand for degradable plastics is growing rapidly. With the implementation of the global "plastic limit" and "plastic ban", it is expected that more than 10 million tons of plastic products will be replaced by degradable materials from 2021 to 2025.
As an important biodegradable material variety, PLA has obvious advantages in performance, cost and industrial scale. It is the bio-based degradable plastic with the most mature industrialization, the largest output, the most widely used and the lowest cost. Analysts predict that by 2025, the global demand for polylactic acid is expected to exceed 1.2 million tons. As one of the fastest growing markets for polylactic acid, my country expects that domestic demand for PLA will reach more than 500,000 tons by 2025.
On the supply side, as of 2020, the global PLA production capacity is about 390,000 tons. Among them, Nature Works is the world's largest polylactic acid producer, with an annual production capacity of 160,000 tons of polylactic acid, accounting for about 41% of the world's total production capacity. However, the production of polylactic acid in my country is still in its infancy, most of the production lines are small, and some of the demand is met by imports. Statistics from the General Administration of Customs show that in 2020, my country's PLA imports will reach more than 25,000 tons.
Enterprises actively expand production
The booming market has also attracted some corn deep processing and biochemical companies to turn their attention to the blue ocean market of PLA. According to data from Tianyancha, there are currently 198 active/existing enterprises that have included "polylactic acid" in my country's business scope, and 37 new ones have been added in the past year, a year-on-year increase of 100%. nearly 20%. The enthusiasm of listed companies to invest in PLA projects is also extremely high.
A few days ago, Lianhong Technology (003022.SZ), a leader in the domestic EVA industry, announced an increase of 150 million yuan to invest in Jiangxi Academy of Sciences New Biomaterials Co., Ltd., holding 42.86% of Jiangxi Academy of Sciences. The relevant person in charge of the company introduced that the capital increase to Jiangxi Academy of Sciences will realize the company's layout in the field of biodegradable materials and cultivate new economic growth points for the company's subsequent development.
It is reported that Jiangxi Academy of Sciences is mainly engaged in the research and development, production and sales of PLA. It plans to build a "130,000-ton/year biodegradable material polylactic acid industry chain project" in two phases by 2025, with a first phase of 30,000 tons/year. In 2012, it is expected to be put into operation in 2023, and the second phase of 100,000 tons/year is expected to be put into operation in 2025.
Huitong Co., Ltd. (688219.SH) also jointly invested in the establishment of a 350,000-ton polylactic acid project with the Anhui Wuhu Sanshan Economic Development Zone Management Committee and Hefei Langrun Asset Management Co., Ltd. in April this year. a project company. Among them, the first-phase project will invest about 2 billion yuan to build a PLA project with an annual output of 50,000 tons. The construction period is 3 years. The second-phase project will continue to build a PLA project with an annual output of 300,000 tons.
Recycling leader GEM (002340.SZ) recently stated on the investor interactive platform that the company is building a 30,000-ton/year degradable plastic project. The main products are PLA and PBAT, which are used in blown film injection molding and other fields.
The PLA production line of Jilin COFCO Biomaterials Co., Ltd., a subsidiary of COFCO Technology (000930.SZ), has achieved mass production. The design annual production capacity of the production line is about 30,000 tons of PLA raw materials and products.
The domestic lactic acid leader Jindan Technology (300829.SZ) has a 1,000-ton polylactic acid pilot production line. According to the announcement, the company plans to build a new biodegradable polylactic acid material project with an annual output of 10,000 tons. As of the end of the first quarter, the project has not yet started construction.
In addition, Zhejiang Hisun Biomaterials Co., Ltd., Anhui Fengyuan Taifu Polylactic Acid Co., Ltd., Zhejiang Youcheng Holding Group Co., Ltd., and Shandong Tongbang New Material Technology Co., Ltd. all plan to build new PLA production capacity. Analysts predict that by 2025, the annual domestic production of PLA in 2010 may reach 600,000 tons.
Companies mastering lactide production technology may reap full profits
At present, the production of polylactic acid by ring-opening polymerization of lactide is the mainstream process of PLA production, and its technical barriers mainly lie in the synthesis of PLA raw material lactide. In the world, only Corbion-Purac Company of the Netherlands, Nature Works Company of the United States and Zhejiang Hisun have mastered the production technology of lactide.
"Because of the extremely high technical barriers of lactide, the few companies that can produce lactide are basically self-produced and used, which makes lactide a key link restricting the profitability of PLA production enterprises." The above-mentioned industry insiders said. "At present, many domestic companies are also opening up the lactic acid-lactide-polylactic acid industry chain through independent research and development or technology introduction. In the future PLA industry, companies that master lactide technology will gain obvious competitive advantages, so as to share More industry dividends.”
The reporter learned that in addition to Zhejiang Hisun, Jindan Technology also focuses on the layout of the lactic acid-lactide-polylactic acid industry chain. At present, it has 500 tons of lactide and a pilot production line, and the company is building a 10,000-ton lactide production line. The line started trial operation last month. The company said that the lactide project has no insurmountable obstacles or difficulties, and it needs to run stably for a period of time before mass production, but it does not rule out that there are still areas for optimization and improvement. future.
Northeast Securities predicts that with the gradual expansion of the company's market and the commissioning of projects under construction, Jindan Technology's revenue and net profit in 2021 are expected to reach 1.461 billion yuan and 217 million yuan, a year-on-year increase of 42.3% and 83.9%, respectively.
COFCO Technology also stated on the investor interaction platform that the company has mastered the production technology and processing technology of the entire PLA industry chain through technology introduction and independent innovation, and the 10,000-ton lactide project is also steadily advancing. Tianfeng Securities estimates that in 2021, COFCO Technology is expected to achieve revenue of 27.193 billion yuan and net profit of 1.110 billion yuan, an increase of 36.6% and 76.8% year-on-year respectively.
