Degradable plastics in China

Degradable plastics refer to a class of plastics whose various properties can meet the requirements of use, remain unchanged during the storage period, and can be degraded into environmentally harmless substances under natural conditions after use. According to the classification of raw materials, it can be divided into bio-based degradable plastics and petroleum-based degradable materials. Bio-based degradable plastics include PLA, PHA and PBS, and petroleum-based degradable materials include PBAT and PCL.

According to the data of Zhiyan Consulting, the demand for biodegradable plastics in China in 2012 was 220,000 tons, and it increased to 520,000 tons in 2019, accounting for only 4.6% of the world. With the implementation of the plastic ban policy in 2020, biodegradable plastics have a lot of room for development in China. Domestic biodegradable plastics are mainly used in takeaway catering packaging, express packaging, supermarket shopping bags and agricultural mulch films. With the introduction of plastic ban measures in 2020, we expect that by 2025, domestic biodegradable plastics demand can increase to 4.2 million tons. (Source: Guohai Securities)

The price of degradable plastics is 2-3 times that of traditional plastics, which limits its large-scale application. Similar to the lithium battery and photovoltaic industries, degradable plastics belong to an important industry in the field of environmental protection. China is expected to implement subsidy policies to help its development. The subsidy policy can be supported by: 1. Guiding enterprises to use advanced technology for production;
2. Promoting the expansion of industrial scale and realizing cost sharing through scale effect;
3. Promoting the expansion of industrial scale, increasing the demand for upstream raw materials, and promoting the expansion of the raw material industry so that raw materials prices will drop.
Three logics reduce the cost and price of biodegradable plastics. (Source: Tianfeng Securities)

hashtag#china hashtag#degradable hashtag#PLA hashtag#PBAT