Biodegradable Plastics Sector Drops Sharply
On June 8, the biodegradable plastics sector (BK0909) saw a notable correction, closing at 1,998.51 points, down 72.91 points or 3.52%. The intraday high reached 2,059.07 points and the low touched 1,998.45 points. Trading volume reached 17.21 billion yuan with a turnover rate of 2.09% and volume ratio of 1.26, indicating still active trading but with bearish momentum prevailing.
Sector fund flow showed net outflow from major players, with circulating market capitalization at 727.3 billion yuan. Analysts believe the correction was mainly driven by technical adjustment needs after significant prior gains and weakening macro sentiment, but long-term policy drivers remain unchanged.
Kingfa Tech Breakthrough in Biodegradable Product Mass Production
Guangdong Kingfa Technology Co., Ltd. has made important progress in the biodegradable field. The company has successfully developed and mass-produced biodegradable masks, gloves, and protective suits, filling the gap of green products in the medical protection field. The company has registered capital of 355 million yuan, with 2025 operating revenue reaching 5.141 billion yuan, supported by a national-level scientific research platform.
In addition, Kingfa Tech recycled plastics circular economy industrial park (Qingyuan) project is steadily advancing, with Building 62 passing the special construction project fire protection design review. The company recently won the bidding for Kehuan Group (Beijing) new material modified polyethylene contract project, demonstrating its technical advantages and market competitiveness in modified plastics.
HDPE Recycled Materials Play Key Role in Circular Economy
Black hollow-grade HDPE recycled materials are becoming an important material in the circular economy due to their unique properties and wide application scenarios. HDPE itself features high strength, chemical corrosion resistance, and impact resistance. After recycling, sorting, cleaning, crushing, and modification processes, recycled materials not only retain the physical properties of virgin materials but also significantly reduce production costs and resource consumption.
Quality manufacturers of black hollow-grade HDPE recycled materials in the Wuhu area continue to deepen their expertise in technology, application, and industry reputation, providing strong support for regional circular economy development.
Henan Pingmei Shenma PC Expansion Approved
Henan Pingmei Shenma Polycarbonate Material Co., Ltd. phase II 200,000 tons/year polycarbonate and supporting 150,000 tons/year phosgene project has passed the energy conservation review. The company focuses on polycarbonate (PC) and bisphenol A material production, adopting internationally advanced phosgene method and ion exchange resin method processes, and won the 2025 provincial science and technology progress award. The advancement of the phase II project will further enhance domestic PC capacity self-sufficiency.
Plastic Restriction Order Accelerates, Paper Straws Fully Deployed
The plastic restriction order continues to escalate. Shopping malls, supermarkets, and pharmacies in urban areas have banned non-degradable plastic bags, and the catering industry has banned non-degradable disposable plastic straws. Paper straws and other alternatives are fully entering consumer scenarios, driving continued growth in demand for biodegradable and alternative materials.
Industry Outlook
Short-term sector correction does not change the long-term trend. Under the triple drivers of intensified plastic restriction policies, circular economy advancement, and corporate technology breakthroughs, the biodegradable plastics and recycled plastics industry still has structural growth opportunities. Investors should pay attention to the pace of policy implementation and corporate capacity release, and seize opportunities in sub-sector leaders.
