Polylactic Acid prices boosting up in March
- 30-Mar-2022 12:26 PM
- Journalist: Bob Duffler
The Polylactic acid market has been witnessing strong offtakes from downstream industries such as packaging, bio-based food and beverages and other. As the prices of upstream corn, sugarcane and cassava are increasing, so is the prices of Polylactic acid. The prices of Polylactic Acid according to ChemAnalyst data were assessed at $2630/T FOB USG USA on 25th March.
Since Sulzer and NatureWork (major PLA manufacturers) merged up to increase their production rate to cater to the demand for Polylactic Acid (PLA) globally, the production capacity of raw ingredients required to produce Polylactic Acid, lactic acid, lactides increased after this joint venture. With the establishment of new plant along with revised technology, the manufacturers are aiming to achieve domestic and global demand. The major components driving the growth of Polylactic acid is the increasing awareness and consumer preferences for bio-based products in food packaging, thermoformed home appliances and others. Surging demand for packed food commodities, rigid containers, especially in urban areas has soared the prices of Polylactic acid. Moreover, regulation and legal laws implemented by several Asian countries such as China, India have directly affected the demand for Polylactic acid, as the requirement of PLA has increased. After the implementation of lockdown in China, the need for ready-to-eat meals in the Chinese market increased, forcing the inventories to escalate their production rate. Furthermore, the ongoing war between Russia and Ukraine have severely affected the trade routes due to restrictions on different ports, causing supply halts.
As per Chemanalyst, “The prices of Polylactic Acid will increase slightly in the upcoming weeks, as the demand from downstream sectors, biodegradable medical equipment’s, food, and beverages packaging. Since Polylactic Acid is biodegradable, its need will increase the prices globally”.