Metallurgy / Chemicals / Rubber & Plastics

Recently, due to rising raw material costs, PBAT profits have been squeezed. Sichuan Guangan Hongyuan, Shandong Rui'an Biological and Shandong Ruifeng High Materials' originally planned production units may be delayed due to this.

According to a report from the Institute of Biodegradable Materials, on September 23, the PBAT ex-factory price was 23,000 yuan/ton, the market average transaction price was 21,000 yuan/ton, and the supply at the beginning of the year was low at 19,200 yuan/ton.

In addition, according to Longzhong calculations, as of September 23, the mainstream price of PBAT in East China was 21750 yuan/ton (a deviation from the price data adopted by this official account). According to the cost calculation formula, the PBAT production cost this week was about 23376 yuan/ton. As a result, the gross profit of PBAT after deducting production costs is -1626 yuan/ton, which is -700 yuan/ton compared to last week's profit. (The PBAT price is the mainstream price in the East China market, and the freight is not deducted from the gross profit. Due to the inconsistency of each manufacturer, the cost will be different)

Recently put into production

Zhejiang Huafeng Group's 30,000-ton PBAT unit was put into operation on August 25.

The 120,000-ton PBAT plant of Ningbo Changhong High-tech Phase I was put into operation on September 11.

Coming into production in the future

Sichuan Guangan Hongyuan's 50,000-ton PBAT plant (total 100,000 tons) was originally expected to be put into operation in September, but it still needs to be commissioned and the start-up will be postponed.

Shandong Rui'an Biotech's 60,000-ton PBAT plant was originally planned to be put into production in September, but it still needs to be debugged and the start-up will be postponed.

Shandong Ruifeng High Material's 60,000-ton PBAT plant will be put into operation in the third quarter, and there is no news yet.

The first phase of the 100,000-ton PBAT project of Sinochem Donghua Tianye will be put into operation before the Spring Festival.

60,000 tons of Yantai Wanhua Chemical is scheduled to be put into production by the end of this year.

100,000 tons of Shanghai Tongcheng New Material is planned to be put into production early next year.

Hunan Yuxin shares 60,000 tons in Huizhou plans to put into production in the first quarter of next year.

The 60,000-ton PBAT project of Shanxi Huayang New Materials will be completed on March 30, 2022.

Xinjiang Wangjinglong's 100,000-ton PBAT plant is uncertain whether it will be put into operation in the middle of next year.

Hubei Yihua's 60,000-ton PBAT or 40,000-ton PBS project was originally planned to be put into operation in June 2022.

Old factory dynamics

Xinjiang Lanshan Tunhe 2x6 million tons of PBAT installations, one of which produced 80% of the load of PBAT installations, and the other production line was switched from PBS production to PBT production at the end of July. It is planned to build a total capacity of 240,000 tons/year, the first phase is 120,000 tons/year, and it is expected to be put into operation in October 2022; the second phase is 120,000 tons/year, and it is expected to be put into operation in April 2023.

Shanxi Jinhui Zhaolong's PBAT plant has a production capacity of 30,000 tons/year, one production line, and the plant load is 80%. In 2021, Jinhui Zhaolong's new biodegradable plastic project with an annual production capacity of 120,000 tons will officially start, and it is expected to be put into operation in the second half of 2022.

Zhuhai Wantong Chemical/Feifa Technology’s PBAT old plant has a capacity of 60,000 tons/year, and two production lines: the current 25,000 tons/year installation load is 50%; the 35,000 tons/year installation will restart at the end of July after the May Day shutdown. 50%; the new PBAT plant has a capacity of 60,000 tons/year, one production line, and the plant has been shut down after May Day. The PBAT Phase III plant has a capacity of 180,000 tons/year, and the follow-up construction and commissioning work will be promoted in due course. It is reported that it will be commissioned in September 2021. In the fourth quarter of 2021, 30,000 tons of PLA production capacity will also be put into production smoothly.

Yingkou Kanghui/Hengli Petrochemical's PBAT plant has a production capacity of 33,000 tons/year and one production line. It will start up in mid-September with a 90% load. In 2021, Yingkou Kanghui New Materials Co., Ltd. has formally signed contracts with an annual output of 600,000 tons and an annual output of 300,000 tons of PBS biodegradable material projects. Among them, the two major projects of 150,000 tons/year PBS biodegradable plastics and 300,000 tons/year PBAT biodegradable plastics held a groundbreaking ceremony on September 23, and are expected to be completed and put into operation in 2022.

Gansu Mogao Co., Ltd. has a 20,000-ton PBAT device, one production line, shutdown for maintenance, and a small amount of inventory.

Yifan Hangzhou Xinfu's 10,000-ton PBAT plant was shut down, no inventory, and quotations were suspended. We will wait and see the price trend of raw material BDO in September.

BDO has recently strengthened and is now reported at 29,500 yuan/ton. Recently, many major BDO factories have stopped for maintenance, and the supply of goods in the market is average.