On July 30, 2021, affected by the continued rise in BDO prices, Kanghui New Materials Technology Co., Ltd. and Lijin (Suzhou) Trading Co., Ltd. issued price adjustment notices, announcing an increase in PBAT by 2,000 yuan/ton. This price increase will be implemented on August 1.
It is reported that this is the third price increase of Hengli Kanghui in July!
On July 1st and July 8th, Kanghui New Material Technology Co., Ltd. and Lijin (Suzhou) Trading Co., Ltd. jointly issued price adjustment notices, respectively announcing the price increase. The prices are 1,000 yuan and 800 yuan, with a cumulative increase of 1,800 yuan/ton.
It is reported that other polymer manufacturers also have plans to increase prices, and PBAT factory quotations on July 30 are common At 21,000-22,000 yuan, the market quotation is 19,500 yuan, and the ex-factory price and the market price continue to form an inversion. The inventory quotations before March this year were slightly lower, but the supply after May was relatively strong, with prices rising to 19,500 yuan.
In the past few days at the end of July, the PBAT market price was slightly firm. Stimulated by China Post’s 50 million order, the shortage of BDO supply, and Shanxi’s review and approval of plastic ban regulations, merchants who stocked up in the early stage There is a reluctance to sell.
High raw material price levels lead to high raw material costs for PBAT. At present, most domestic manufacturers use a one-step method to prepare PBAT. The required raw materials are PTA, AA and BDO. The average price of AA and BDO in the third quarter is about 6131 yuan/ton and 7883 yuan/ton, which is 5825 yuan higher than the price of PE raw material ethylene. /ton were 5% and 35% higher respectively. The high price level of raw materials is one of the reasons for the high cost of PBAT raw materials.
BDO bidding price reached 30,000
Up 47% in one and a half months
Because BDO accounts for about 58% of PBAT aggregation, BDO prices directly affect the price trend of PBAT. After BDO fell to the 17,000 mark in mid-June, the price has continued to rise since then. As of July 30, it was reported at 25,500 yuan, an increase of 47% in one and a half months.
BDO prices continue to rise, due to major manufacturers overhauling or replacing catalysts. Xinjiang Meike Phase II has not yet restarted. On July 25, both Lanshan Tunhe and Xinjiang Xinye were shut down for maintenance. , Shaanxi Chemical replaced the catalyst; coupled with the slowdown in transportation in some areas due to heavy rains and the epidemic, the supply of goods tightened again.
There are differences in the ability of various downstream industries to accept high-priced raw materials. Among them, the cost conduction of the PTMEG-spandex and GBL-NMP industry chains is acceptable. However, some PBT factories are subject to raw material or cost constraints. With negative expectations, the PBAT industry also suffered losses and was not motivated to start operations, and the commissioning of new production capacity was delayed. Downstream resistance to high prices increased, and the mentality of chasing prices became slightly more rational.
The speculative mentality of some traders still exists, which helped the bidding price rise from 27,505 yuan/ton to 30,500 yuan/ton by wire transfer ex-factory during the week, adding to the bullish atmosphere on the market, and focusing on spot negotiations. Keep pushing higher. In addition, supply is tight, major manufacturers continue to be reluctant to sell, and there are differences in price acceptance among various downstream industries. The focus of small order trading continues to rise.
PTA supplies are temporarily tight
A cumulative increase of 47% during the year
Not only BOD, PTA prices have continued to rise since July, with a cumulative increase of more than 400 yuan/ton within the month. On July 27, the spot reference price of PTA in East China was 5,450 yuan/ton, an increase of 1.67% from the previous day, and a cumulative increase of 47% from the price of 3,700 yuan/ton at the beginning of the year.
Recently, affected by typhoons, the Yangtze River has been closed to navigation, and tight supply of goods is one of the important factors for the rise in PTA prices. Jiangsu and Zhejiang have always been the main production bases of PTA. Since March, the PTA market has been showing a destocking pattern. Under the influence of typhoons, the progress of goods entering the warehouse area has been hindered, which has intensified the tightness of PTA spot supplies. In addition, the PTA market equipment has recently been overhauled. The news keeps coming. Judging from the current supply and demand pattern, the maintenance of PTA equipment in July and August involved more than 5.5 million tons of production capacity, and the downstream polyester load has maintained an operating level of more than 90% since the recovery after the year. In view of the current polyester inventory and Cash flow situation, polyester load may continue to remain high in the short term, which will support PTA market demand.
The trends in the industry:
Many leading polyester companies have begun to launch PBAT projects
The price increase of PBAT leading companies may have made some people smile. But what is more worth mentioning is that the National Development and Reform Commission, the Ministry of Agriculture and Shanxi have successively issued policies related to the degradable plastic industry, which have re-boosted industry confidence. Is the spring of the degradable industry coming?
Starting from July 1st, Shanxi’s non-degradable plastic bags will be prohibited from being used in the built-up areas of the city (including counties, cities and districts), and non-degradable disposable plastic tableware will be restricted from use. For the built-up areas of the city (including counties, cities, and districts), disposable plastic supplies are no longer actively provided in star-rated hotels, hotels and other places.
On July 2, the Ministry of Finance and the Ministry of Agriculture and Rural Affairs released the 2021 key policies to strengthen agriculture and benefit farmers, supporting areas with conditions to focus on the replacement of fully biodegradable mulch films for suitable crops and Xinjiang Mechanized recycling of agricultural film in cotton areas.
On July 7, the “14th Five-Year Plan for Circular Economy Development” issued by the National Development and Reform Commission clearly stated that it requires active and steady promotion.� Degradable plastics, in the context of the EU’s new plastic restriction regulations, the National Development and Reform Commission document has given reassurance to the degradable industry.
With the full implementation of this year’s strictest “plastic restriction order”, the country continues to upgrade plastic pollution control measures and efforts, which can The market demand for degradable plastics is growing rapidly and the gap is widening. At present, more than 20 provinces in China have successively issued new “plastic restriction orders”. Under the new trend of alternatives, degradable plastic materials such as PLA, PBAT, and PHA have attracted attention, and many leading domestic polyester companies, including Hengli and Sanfangxiang, have begun to launch PBAT projects. According to statistics, by 2025, considering the low operating rate of degradable plastic production capacity, China’s production capacity will need to reach 4.76 million tons to meet demand. </p
