China Synthetic Resin Association reminds – PBAT resins have poor prospects and investment needs to be cautious
Latest News: Faced with the rapid construction of polybutylene terephthalate-adipate (PBAT) resin plants, the contradiction between supply and demand is highlighted, July 1, China The Biodegradable Resin Branch of the Synthetic Resin Association issued the “Proposal on Promoting the Healthy and Orderly Development of the PBAT Resin Industry”, suggesting that the PBAT resin industry is not optimistic and should invest cautiously.
Wang Wenguang, executive vice president of the association, said in an interview with reporters that the current production capacity of PBAT resins has far exceeded market demand, and as time goes on, the share of excess capacity will become larger and larger.
According to statistics from the Biodegradable Resin Branch of China Synthetic Resin Association, it is estimated that the planned annual production capacity of PBAT resins will be about 15 million tons by 2025. As of the end of April this year, domestic PBAT resins have achieved an annual production capacity of 462,000 tons, and it is expected that by the end of 2022, the annual production capacity will reach 2.26 million tons. In 2021, the actual domestic sales of PBAT resins are only 150,000 tons, and it is expected to be around 200,000 tons in 2022.
Wang Wenguang said that for enterprises that have already put into production, it is necessary to rationally plan the production capacity and output. In the current situation of serious overcapacity of PBAT resins, all production enterprises should reasonably plan their output according to market demand, and it is recommended that the operating rate be maintained at a low load, so as to avoid the imbalance of market supply and demand caused by overcapacity, which will lead to vicious competition. For companies that have completed or are in the process of testing, it is recommended to delay production or switch to other varieties according to the characteristics of the production line. For companies that plan to invest, it is recommended to enter the market cautiously. If you have not invested funds, you can reconsider whether to invest. At present, the prospects of PBAT resins are not optimistic, and investment should be cautious.
In order to solve the problem of overcapacity of PBAT resins, Wang Wenguang pointed out three development paths.
First, innovative research and development to improve the quality of PBAT products. Take plastic shopping bags as an example. At present, plastic shopping bags filled with modified PBAT resin have defects such as insufficient strength, which affects consumers’ use and tends to be surpassed by non-woven bags. To this end, the industry should strengthen product innovation and research and development, improve the strength of PBAT shopping bags, and produce in strict accordance with the published PBAT film special material group standards. It is recommended that the total filling amount of modified PBAT film special materials should not exceed 30% to ensure product strength .
The second is to jointly develop new uses of PBAT resins. At present, PBAT is mainly used in plastic shopping bags, and the market demand is not large enough to absorb the existing planned production capacity. Enterprises can develop new uses of PBAT resins and open up new markets, such as mulching films, continuous roll bags and garbage bags.
The third is to focus on the international market. The quality of my country’s PBAT resins is world-class, and the production capacity far exceeds the domestic market demand. However, the only companies producing PBAT resins in the world are BASF and Italy’s Novoment. At present, many countries have introduced policies to control plastic pollution, and the demand for PBAT resins is increasing. The industry should focus on the international market.