China's PO price has been increasing from early May 2013

According to Biomaterials China News which was issued by CCM in October, the domestic ex-works price of propylene oxide (PO), a raw material of polypropylene carbonate (PPC), has been rising since early May 2013. The price has increased from USD1,880.1/t in early May 2013 to USD2,115.1/t in late Sept. 2013, up by approximately 12.5%. There are three main factors behind the price uptrend of PO in May-Sept. 2013.

 

Firstly, many PO enterprises undertook equipment maintenance of their PO production facilities during April-June 2013, which led to the tight supply during this period and thus causing an increase in the domestic PO price. In China, due to the highly concentrated production capacity in the domestic PO industry (the capacity of top six PO enterprises accounted for 75.7% of China's total in 2012), the market supply of PO is reduced significantly when the major enterprises are undertaking equipment maintenance.

Secondly, the domestic price of the raw materials for PO witnessed an increase in July-Sept. 2013, which provided support for the domestic PO price. According to related statistics, the producer prices of propylene in East China and liquid chlorine in China have increased by 11.0% and 25.4% respectively from July 2013 to Sept. 2013. Propylene and liquid chlorine are two main raw materials of PO.

Thirdly, the increasing market demand from downstream industries also drove up the PO price from July 2013. Along with the PPC industry, domestic PO is also consumed in the polyether polyol (PPG) industry, which accounts for approximately 75% of the total PO consumption. According to Wang Hongke, a salesman of Befar Group Co., Ltd. (a leading PO supplier in China), Sept. and Oct. coincide with the peak consumption season for PPG every year, which helped to boost the demand for PO and in turn drove up the domestic PO price.

However, the increasing price of PO has had little effect on the domestic PPC price, despite PO accounting for 60%-70% of the total production cost of PPC resin. According to CCM's price monitoring, the average ex-works price of PPC from the major domestic manufacturers increased slightly from USD4,520/t in May 2013 to USD4,560/t in Sept. 2013, only up 0.9%.

The inability of PPC manufacturers to raise the price of PPC is the key factor behind its relatively stable price. Mr. Zhao, Sales Manager of Nanyang Zhongju Tianguan Low Carbon Technology Co., Ltd. (the largest PPC producer in China with a capacity of 22,500t/a), observed that PPC manufacturers may lose customers if they raise the PPC price in view of the currently small domestic PPC market. This is because PPC is very expensive compared with traditional plastics such as low density polyethylene (LDPE, currently priced at     USD2,025.9/t) or polypropylene (PP, currently at USD1,855.8/t). Even biodegradable plastics such as PLA, which is currently priced at USD4,401/t, are more cost competitive than PPC.

In summary, the increasing PO price has brought great cost pressure to domestic PPC enterprises, and their profit will be reduced. PPC producers should pay more attention to the downstream products. PPC producers can take actions to improve the competitiveness of PPC in the plastics marketplace, such as improving the comprehensive properties of PPC resin such as its solvent resistance and oxygen insulation in order to expand the scope of application of PPC.

Table of Contents of Biomaterials China News 1310:

Enterprises in the bioplastic packaging industry make significant breakthroughs

China's PO price has been increasing from early May 2013

Three companies plan to develop bio-based polyhydric alcohol

Hubei Guanghe successfully produces biological plastics

China's enterprises actively establish new biological PDO programs in 2013

China's corn price decreases slightly from Aug. 2013

China's PLA import volume decreases in Aug. 2013

China's import volume of dry cassava decreases in Aug. 2013

China's import volume of castor oil and its derivatives decreases in Aug. 2013

Guinea-Bissau imposes ban on use of plastic bags in commodity trade

A Dutch teenager invents a garbage collection device

5.6 billion paper packages of milk beverage recycled in China in H1 2013

Doctors in Zhongshan Hospital implant degradable stents

Three companies to establish a new biotech company

Biomaterials China News, with 12 to 14 topics in one issue, published by CCM on 8^th every month, will bring you the latest information on the market dynamics, company dynamics, new biomaterials products, new biomaterials technology development, new legislations as well as policies and raw material supply dynamics, which are shaping the significant market intelligence of the industry.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals, CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis, and Consultancy Service. 

For more information, please visit http://www.cnchemicals.com.

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Tel: 86-20-37616606

Email: econtact@cnchemicals.com

China PPC Industry Grows in Twists and Turns

Now many domestic PPC (poly propylene carbonate) producers delayed or slowed down their expansion projects, which were planned in latest few years, according to CCM International’s May issue of Biomaterials China News.

A project with the capacity of 3,000 t/a PPC plastic is abolished in 2011 attributed to the immature technology and facility. The production line is owned by China National Offshore Oil New Material Co., Ltd., (CNOOC New Material) a level-three subsidiary of China National Offshore Oil Corporation (CNOOC). CNOOC New Material began this project's R&D in 2004, cooperated with Changchun Applied Chemistry Institute of the Chinese Academy of Sciences(Changchun Applied Chemistry Institute) , and started the construction on July 31, 2007. Before it was abolished, the project had been called off and examined twice. A staffer from the technology development department of CNOOC said the examinations were because the facility was out of order.

 

The start of an expansion project with the capacity of 10,000 t/a PPC plastic will delay to H2 2012 from March 2010. Mr. Zhang, Manager of Inner Mongolia Mengxi High-Tech Group Co., Ltd. (Mengxi High-Tech), said they planned to add a production line with capacity of 10,000 t/a on March 2, 2010, and they had already started R&D from 2002. However, the expansion hasn’t begun by now. A salesman said the delay was because of technology; now the problem had been solved, so they planned to restart the expansion in H2 2012. The expansion would be divided into 3 phases, and at last, the capacity would increase to 50,000 t/a. In 2004, Mengxi High-Tech cooperated with Changchun Applied Chemistry Institute and constructed the first domestic PPC production line with the capacity of 3,000 t/a.

 

Another expansion production line with capacity of 25,000 t/a PPC resin of Jiangsu Jinlong-CAS Chemical Co., Ltd. (Jiangsu Jinlong) also gives place to the company's another project. In 2009, Jiangsu Jinlong finished the PPC resin production line with capacity of 22,000 t/a. They planned to expand the capacity to 100,000 t/a in 2011,   and the first phase with capacity of 25,000 t/a should be finished before 2012. They also made preparation to be listed thanks to the joint of VC fund. But on April 18, 2012, a staffer of Jiangsu Jinlong said the PPC resin program was slowed down, because the company wanted to speed up the construction of another program, and the PPC resin program would be completed in 2013. Jiangsu Jinlong cooperated with Guangzhou Institute of the Chinese Academy of Sciences (Guangzhou Institute) in technology.

 

Another new PPC plastic program’s construction is very slow. The program belongs to Guangzhou Tiancheng chemical Co., Ltd., an especially new company for the PPC program, established by the cooperation of Guangzhou Honsea Sunshine Bio Science & Technology Co., Ltd., Tinci Holdings Ltd. and Sun Yat-sen University. They signed the contract in October 2007, whose planned capacity was 60,000 t/a. The first phase was 10,000 t/a, which should be completed in four years. But now, the program is still in foundation construction.

 

For these companies, the problems for them to delay,  slow down or even give up their PPC programs are mainly from technology, market and cost.

 

Technology is the first barrier for PPC industry.

 

Both CNOOC New Material and Mengxi High-Tech have suffered the technology constraint. One of them gave up and the other spent 10 years on R&D. Currently, four domestic mainly carbon dioxide degradable plastics technology are developed by Changchun Applied Chemistry Institute, Guangzhou Institute, Sun Yat-sen University and Tianjin University. Based on their technology, both catalyst and raw material are expensive, and then the PPC cost is very high, which leads to the high sales price.

 … …

Source: Biomaterials China News 1205

http://www.cnchemicals.com/Newsletter/NewsletterDetail_245.html

Main content of Biomaterials China News 1205:

China PPC industry grows in twists and turns

Overview of PLA import and export in China, 2007-2011

Guangxi Guangwei to gain extra USD19.0 million to support the product line construction of bio-material PVC

Zhejiang Fuling Plastic established academician workstation

Kingfa works hard to promote its biodegradable shopping bags

NatureWorks to expand PLA capacity in Thailand

Xinfu Pharmaceutical changed its abbreviation to *ST Xinfu in SZSE

Chinese cassava starch price remains at a low level

China strengthens regulation of corn industry

Largest domestic BDO project completed its first phase

Bio-based and biodegradable plastic additives gain new breakthrough

Ecomann PHA industrialization technology won Jining Awards for Science

HTT to develop new degradable polyester

… …

(Guangzhou China, May 10, 2012)

Biomaterials China News, with 12 to 14 topics in one issue, published on the 8th every month, will bring you the latest information on the latest market dynamics, company dynamics, new biomaterials products, new biomaterials technology development, new legislations and policies and raw material supply dynamics that are shaping the market.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source : http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1066.html

China to Accelerate Development of Biomaterials

Chinese Ministry of Industry and Information Technology (MIIT) released a "Twelfth Five-Year Plan for Industrial Technology Innovation (2011- 2015)" on November 4, 2011, which will accelerate the development of domestic biomaterial industry in next several years, according to CCM International’s first issue of Biomaterials China News.

In general, the plan will support technological innovation of four industry fields including raw materials, equipment manufacturing, consumer goods and information technology sectors to boost the industrial transformation and upgrading. Among these fields, biomaterial industry will directly benefit from the related support policies of the raw materials and consumer goods. Based on the specific content of the plan, domestic biomaterial industry will get more support from the Chinese government and enter a rapid development stage.

Major tasks of the plan are: to strengthen the technological innovation ability, to build the service system of technological innovation, to develop the key and common technologies, to promote the transformation of scientific research achievements, and to foster and develop the emerging industries of strategic importance.

Major guarantee measures of the pan to support technological innovation are: to establish a coordination mechanism, to increase investment, to strengthen policy guidance, to improve the technology standard system, to expand international scientific and technological cooperation and to strengthen talent training.

Besides this plan, another plan related to biomaterial, namely "Twelfth Five-Year Plan for New Material Industry", has also been completed by MIIT at the end of November 2011, which may be published in December 2011. On November 16, 2011, Mr. Gao, an officer from MIIT, revealed that total output value of domestic new material industry may reach about USD300 billion in 2015, with an annual growth rate of above 25% from 2011 to 2015. Meanwhile, the specific guarantee measures are: to establish a stable financial input mechanism, to build and perfect a safeguard mechanism for investment and to promote 30 new materials, etc.

As for the above plans, some insiders of domestic major biomaterial producers believed that the above plans will be helpful to accelerate development of domestic biomaterial industry in the next several years. Mr. Zhang, a staff from Wuhan Huali Environmental Technology Co., Ltd. (Wuhan Huali) which is the largest starch-based material producer with capacity of 40,000t/a in China, thought that the above two plans will be helpful to exploit new domestic market and promote starch-based material in the future. Moreover, Mr. Zhang hoped that the Chinese government can release more support policies in addition to the measures of the above plans, such as increasing export tax rebates to strengthen international competitiveness and providing finance subsidy to reduce raw material cost.

Moreover, Mr. Liu, a staff from Tianjin Green Bioscience Co., Ltd.(Tianjin Green)which is the largest PHA (Polyhydroxyalkanoates) company with capacity of 10,000t/a in China, believed that the above plans will increase domestic demand for biomaterials. Meanwhile, he also revealed that Tianjin Green may adjust product structure, expand capacity and make more efforts to cooperate with more domestic downstream companies in the future. Furthermore, Mr. Liu also expected that the Chinese government can provide financial subsidies to reduce the negative effect caused by the increasing RMB appreciation.

Additionally, Mr. Wu, a manager from Nanyang Zhongju Tianguan Low Carbon Technology Co., Ltd. (Nanyang Zhongju Tianguan) which is the largest PPC (Polypropylene-carbonate) company with capacity of 5,000t/a in China, also generally agreed with the above opinions of Mr. Zhang and Mr. Liu. Mr. Wu thinks that the plan can improve competitiveness of biomaterial companies to be better than that of oil-based plastic companies. Meanwhile, Mr. Wu hoped that the Chinese government should make a law to clearly regulate a specific content of biomaterials in related environmental friendly products, in order to guarantee stable demands from domestic biomaterial downstream industries.

         

Source: Biomaterials China News

http://www.cnchemicals.com/Newsletter/BiomaterialsChinaNews.shtml

Main content of Biomaterials China News:

China to accelerate development of biomaterials

Overview of development of milk protein fiber in China

Worldwide economic downturn affects PTT sales in China

PHA manufacturers to benefit from the ban on plastic in Europe and in America

Chitosan fiber still has a long distance to the industrial production

Suzhou HiPro to expand its bio-polyamide capacity

Wanwei Updated High-tech expands PVA capacity

Nanyang Zhongju Tianguan to expand its PPC resin capacity

Zhejiang Hisun to expand its PLA capacity in 2013

… …

(Guangzhou China, December  15, 2011)

Biomaterials China News, with 12 to 14 topics in one issue, published on the 8th every month, will bring you the latest information on the latest market dynamics, company dynamics, new biomaterials products, new biomaterials technology development, new legislations and policies and raw material supply dynamics that are shaping the market.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_892.html

CCM International’s First Issue Biomaterials China News Coming Soon

The first issue of CCM’s Biomaterials China News is estimated to be published in December 2011. Covering columns of market dynamics, price update, company dynamics, import & export analysis, raw material supply and special report, this newsletter will present you the most comprehensive information of China’s biomaterial market.

Why to subscribe?

Having developed rapidly in China in recent years, biomaterials are expected to have a promising market in the future. Some types of biomaterials have achieved great process, such as Poly (lactic acid) (PLA), Polyhydroxyalkanoate (PHA) and Poly (butanediol succinate) (PBS). Domestic manufacturers aim to expand their capacities or increase investment in biomaterials.

Although the market is huge, it is not mature in China. It’s necessary to learn the whole market so as to make wise decisions. Keeping abreast of the dynamics of China’s biomaterials industry is very important for the biomaterial companies. CCM International’s Biomaterials China News will meet all your needs. The newsletter will let you obtain the useful information and make you discover the business opportunities in this industry.

What categories will be reported?

Biomaterials refers to those use renewable materials as raw materials. The latest update and insightful analysis of raw materials, together with biomaterials will be shared in this newsletter.

(1) Raw Material

Corn, potato and cassava, etc.

(2) Biomaterials

-Natural bio-based materials: starch (PSM), cellulose, protein, chitin and lignin;

-Microbial synthetic materials: microbial polysaccharides; microbial polyesters (PHA products);

-Chemical synthesis of bio-based materials: polylactic acid (PLA); poly butylene succinate (PBS); poly propylene carbonate (PPC); polyvinyl alcohol (PVA); polyethylene terephthalate (PTT); polyethylene terephthalate (PET); poly amino acids; poly phosphazene; poly anhydride.

-Bio-nylon: polyamide (PA, raw materials from castor oil, etc.); long-chain dicarboxylic acid (LDA)

If you are interested in CCM’s Biomaterials China News, please feel free to contact us at econtact@cnchemicals.com.

(Guangzhou China, November 18, 2011)

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_c_837.html