BDO industry capital continues to beenthusiastic

According to incomplete statistics, in additionto the six enterprises planned to be put into operation by the end of thisyear, there are still 12 BDO projects under construction, with a cumulativecapacity of about 3.6 million tons/year, and 35 proposed projects, with a totalcapacity of about 12 million tons/year; in addition, there are also projectsunder investigation and not clearly announced, according to industry estimates,the total BDO capacity to be built in China is up to nearly 20 milliontons/year.

In the face of such a situation, the marketwill naturally have doubts about whether there is excess BDO productioncapacity, but there are also industry insiders who express a different view.

"In fact, many of the planned BDOprojects are matching with PBAT projects. As the industry is generallyoptimistic about the prospects of biodegradable materials, the investmententhusiasm for its core raw material BDO is naturally high, and the key tofuture changes in supply and demand in the BDO industry lies in theimplementation speed of BDO projects and PBAT projects. " A seniorindustry source in Shandong introduced.

"It is certain that the nationalimplementation of plastic restriction will become more and more strict, andmore and more areas have also clarified the ban on the use of non-degradableplastics schedule, the landing of new production capacity in the PBAT industrywill also be accelerated." The aforementioned industry sources said.

Recently, the State Post Bureau, DeputyDirector of the Department of Market Supervision Guan Aiguang said at a routinepress conference that by the end of 2025, the nationwide postal express networkbanned the use of non-degradable plastic packaging bags, plastic tape,disposable plastic woven bags and so on.

According to the 2020 National Developmentand Reform Commission, the Ministry of Ecology and Environment issued the"Opinions on Further Strengthening Plastic Pollution Control", by theend of this year, non-biodegradable plastic products will be banned from use instores, pharmacies, restaurants, express delivery and other places in built-upareas of cities above prefecture level and counties in coastal areasnationwide.

"On the other hand, the high price ofBDO in the early stage is also one of the factors that hinder the growth of thescale of PBAT industry, with the rational fall of BDO price, the promotioneffect of PBAT is also expected to improve, which is also considered a positivefor BDO industry." The aforementioned industry sources further said.