Biodiesel and EVA prices rise:
Biodiesel: this week, the president of Indonesia announced that it would stop the export of “all edible oil and edible oil raw materials” from April 28, and the recovery time is unknown. As Indonesia is the world’s largest producer of palm oil, accounting for more than half of the global supply, the export ban has a huge impact on the global supply of biodiesel raw materials, and biodiesel has risen sharply.
EVA: the price of EVA this week is 24700 yuan / ton, the price is + 1.65% month on month. The price of raw material vinyl acetate is strong, and the cost support remains. On the supply side, due to the recent epidemic, the manufacturer’s shipment has a small impact, and the market supply is still low. On the demand side, some areas started construction due to the impact of the epidemic, and the overall demand is relatively light.
This week’s special recommendation: PLA – degradable plastic with both cost performance and excellent performance.
PLA has both cost performance and excellent performance, and has a broad market prospect under the background of “plastic prohibition”. PLA is a biodegradable material polymerized from lactic acid monomer. Its raw materials are mostly green plants such as corn and sugarcane. It can realize the closed-loop carbon path of “planting carbon fixation – fermentation carbon emission – production carbon emission – decomposition carbon emission”. Compared with plastics produced from petrochemical raw materials, PLA has carbon advantages and renewable advantages. Thanks to its excellent mechanical and processing properties, PLA is mostly used for degradable food containers, tableware and packaging, 3D additives, fibers, medical accessories, etc. it can also be mixed with PBAT with better film-forming properties to make film bags to improve strength. It can basically cover the application of traditional general plastics in the primary products industry. In addition, the relatively low product price makes it stand out among many biodegradable materials. Since 2020, China has stepped from “plastic restriction” to “plastic prohibition”, and set the end of 2020, the end of 2022 and 2025 as key time nodes to orderly prohibit and restrict some non degradable plastic products. According to our calculation, in 2019, the consumption of disposable plastic products such as plastic bags, agricultural films, express packaging and disposable tableware is about 8.5 million tons, the penetration rate of degradable materials is less than 3%, and the market demand of PLA is only 80000 tons. Assuming that the total demand in 2024 is 11 million tons, the penetration rate is 30%, of which the proportion of PLA added in films is 8%, and the proportion of PLA added in express packaging and disposable tableware is 80%, The market space of PLA will reach 1.02 million tons.
It is suggested to pay attention to: Haizheng Biology (a21420. SH), Henan Jindan Lactic Acid Technology Co.Ltd(300829) ( Henan Jindan Lactic Acid Technology Co.Ltd(300829) . SZ), Cofco Biotechnology Co.Ltd(000930) ( Cofco Biotechnology Co.Ltd(000930) . SZ).
Risk warning: the implementation of relevant policies is less than expected, and the iteration of relevant technologies is less than expected.
