Showing posts with label polylactic acid. Show all posts
Showing posts with label polylactic acid. Show all posts

Wednesday, June 13, 2012

Barriers to Lie on Road of Bio-degradable Plastics


More and more businessmen, politicians and citizens turn their sights on the bio-degradable plastics due to the shortness of fossil fuel and serious living condition. Also, domestic bio-materials have gained excellent score both in production capacity and technology. But will bio-degradable plastics have a smooth sail in the future? Maybe there are barriers lying on the road of bio-degradable plastics' development, according to CCM International’s June issue of Biomaterials China News.

High Price leads to small market
 
China has the largest population and now China's technology is close to that of western developed countries. However, China is still considered as a huge production base, but not a consumer market.

For the public, bio-degradable plastic sounds like a luxury. Take the food-grade film for example,PLA (polylactic acid) ,the most popular bio-degradable plastic, can be sold for USD4,740/t, while price of PE (polyethylene, one of the most general plastics) is only about USD1,896/t. Expensive price makes bio-degradable plastic invisible in general activity and daily life though it can attract many people's sight in large exhibition. Only some famous companies, like Coca-Cola and McDonald, who want to bear more social responsibility, have used bio-degradable plastic as their raw material.
 
Mr. Dan Sawyer, Manager of NatureWorks LLC in the Asia-Pacific region, said on April 19, 2012 that the quantity of consumed PLA worldwide increased by 20%, but regions responsible for the increase are Europe and America. In 2005, they entered into the Chinese market, and in 2011, their sale quantity is still about 4,000t, while the capacity of NatureWorks is 140,000t/a.
 
Domestic leading enterprises of bio-degradable plastics, such as Wuhan Huali, Guangdong Shangjiu, Kingfa, etc., complained about the similar problem, expressing that domestic bio-degradable plastic market is very small.

New Market is difficult to expand
 
Besides expensive cost, Mr. Hu, Chief Scientist of Wuhan Huali, explained that the difficulty to expand market has tormented bio-degradable plastic salesmen for a long time. He said that domestic companies have already formed a fixed network by purchasing and selling, while as a new product, bio-degradable plastic is still difficult to enter their network, for most enterprises are afraid to bear extra risk and don’t want to break down the cooperation with their traditional partners.
 
Attacks from low-end products and fake commodities
 
Attributed to government's weak regulation, many cheap fake commodities disturbed the market. When Wuhan Huali tried to expand market, they often have to face the situation exactly as what's said by Mr. Hu, "it just needs some recycled plastic and some calcium carbonate to produce fake commodities which are similar to ours, but these fake commodities can be sold at a very cheap price. If fake commodities can’t be banned effectively, the real environmental bio-degradable plastic industry will not have a bright futrue, which is dangerous (for the industry) at present.

R&D expenditure is insufficient
 
Innovation is the key factor for a company’s development, especially for those high technology industries, such as bio-degradable material. And private enterprises are an important source for innovation as they are sensitive to new technology and new market. But in China, most private enterprises’ R&D expenditure is insufficient. Mr. Bian, Senior Engineer of Shenghong Group, says that the R&D in China is just about how to make new technology applicable to industrial production, and one reason is that their R&D expenditure is limited by company’s budget, the other reason is that they dare not to start a long-term research since they are afraid of market changes. Mr. Hu, Chief Scientist of Wuhan Huali, who has been engaged in Chemical Department of Natural Science Foundation Committee, says that Chinese government should publish more policies to encourage colleges and research institutes conducting application and mass production research, as private companies are not able to apply for NSFC (Natural Science Foundation of China).
 
Raw material needs reformation
 
China has a huge population with relatively little land resources. Undoubtedly, Chinese government has to restrict food and grain application on non-food industries to guarantee domestic food supply. Nevertheless, corn and some grain crops which have abundant starch are still important raw materials of bio-degradable plastic, the problem may not have stood out yet. The total food-and-grain usage in this industry is not huge now. However, once bio-degradable plastics become main material in the future,  the problem can’t be ignored. Luckily, straw and other organic waste can replace grain crop as raw material. Corn deep processing industry can be a reference for the select of raw material, as corn deep processing industry consumed too much corn, which promotes corn price. At last, government published a serious of policies to squeeze their profit continuously.
 
Process technology is not mature
 
Through the development of several centuries, the process technology of fossil fuel plastics is very mature, and fossil fuel plastics can be widely used in almost all industries. But bio-degradable plastics still have many disadvantages, especially in process technology, which leads to bio-degradable plastics’ application focusing on package, medicals and disposable table ware.
 
Recycle and degradation may require a new system
 
In fact, most degradable plastics can’t decompose in nature environment. For example, PLA may exist 100 years or more without controlled-composting environment, which is made up of special facility, special microbe, and temperature of 60 celsius degree for more than 10 days. Besides, garbage workers can’t distinguish PLA from PET efficiently. A new system is required to recycle PLA, according to the dilemma on PLA’s recycle in America in 2009 that rubbish recycle station refused people to use PLA bottlers since PLA can bring great trouble for American Rubbish Recycling System that USA has spent 20 years on the system’s construction.

Though the bio-degradable plastic industry still has many problems to be solved, it’s still a great progress to decrease the rely on fossil fuel and strengthen environmental protection. The current situation is that more problems may be hidden, since the industry has just taken its first step. Nevertheless, the overseas market demand is greatly over its capacity, so the domestic market potential is predicted to be great in the future.

Source: Biomaterials China News 1206

Main content of Biomaterials China News 1206:
Barriers to lie on road of bio-degradable plastics
Numerous bio-material enterprises enter agriculture film market
Development of PLA recycle in China
 PBS may enjoy bright future in China
Kingfa tries to double its sales within four years
Domestic first low-temperature special water soluble fiber successfully developed
JAAS successfully developed degradable straw pot
Corn stock of northeast ports continues rising
Price of global wheat may be pushed to a higher record due to drought
… …
(Guangzhou China, June 12, 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

Tuesday, April 10, 2012

3rd Edition Lactic Acid & Polylactic Acid Benchmarking Report Comes Out

Lactic acid (LA) is one of the most important multifunctional organic acids. Its application fields have been expanding in recent years; more and more high-quality L-lactic acid is needed. In 2011, its total capacity in China reaches 385,000t/a and its output comes to 165,500 tonnes. What is the detailed production situation of lactic acid in the past two years?

Corn and glucose are the two major raw materials for domestic LA production. Being an important production country on corn and glucose, China's supply of the two raw materials for LA production is abundant by now. In 2011, the output of corn and glucose is 184,000,000 tonnes and 1,900,000 tonnes respectively in China. What is the latest information of the two kinds of raw materials in China?

Compared with ordinary plastic, polylactic acid (PLA) is featured by being environmentally friendly and biological degradation, which is attracting more and more attention both at home and abroad. Though China has achieved great progress in the development of PLA in the past ten years, its PLA industry still stays at the initial stage. Domestic PLA production still lags behind some developed countries such as the US. In 2011, there are six active PLA producers in China. The total capacity is 21,500t/a and the output can reach 7,300 tonnes. What are the details of PLA production in China in the past two years?

In terms of PLA consumption in China, the apparent consumption of PLA in 2011 is 11,050 tonnes, 33% more than that of 2010. The most important consumption is plastic commodity, accounting for over 60% of the total consumption of PLA in China in 2011. What is the precise consumption pattern of PLA in 2011?

Speaking of the production cost of LA and PLA in China, the manufacturing cost is the major part, accounting for about 90% of the total production cost. What is the precise analysis of domestic LA and PLA on leading producers in 2012? You can find the answers in CCM International’s 3rd Edition Report of Benchmarking of Lactic Acid and Polylactic Acid in China, published in February 2012.

The report can offer you vital business intelligence of China's LA and PLA market so that you may grasp the potential commercial opportunities. It can also keep informed of your competitors and their activities in China. By the profound analysis providen in this report, readers can learn more about the key market drivers and factors so as to find out the future trend of Chinese LA and PLA market.

Highlights of this report are as follows:
- LA and PLA production situation in China
- LA and PLA production cost in major producers
- PLA technique analysis and PLA consumption pattern


About CCM International
CCM International 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 International 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