Core Viewpoint - The article highlights the advancements in bio-based polycarbonate (PC) technology in China, particularly through a newly authorized patent by Sinopec, which signifies a significant step towards local commercialization of bio-based materials [2][8]. Group 1: Patent and Technology Development - On October 3, Sinopec received authorization for a patent titled "A Bio-based Polycarbonate and Its Preparation Method and Application," indicating progress in bio-based material innovation [2]. - The patented method utilizes isosorbide and diphenyl carbonate (DMC) as raw materials, incorporating cyclic dimer fatty acids to enhance the properties of the resulting bio-based PC, achieving a molecular weight of ≥35,000 and a glass transition temperature of ≤100℃ [3][6]. Group 2: Industrial Production and Market Potential - In early September, a subsidiary of Sinopec, Puyang Shengtong Juyuan New Materials Co., showcased China's first bio-based PC specialty engineering plastic product, with industrial production set to commence by February 2025 [4]. - The bio-based PC production process replaces the co-monomer bisphenol A with renewable isosorbide, achieving surface hardness close to glass and a light transmittance of up to 92%, indicating strong commercial viability [4]. Group 3: Competitive Landscape - Internationally, companies like Mitsubishi Chemical, Covestro, and Teijin are leading in bio-based PC products, with Covestro's bio-based Makrolon® containing 60% bio-based carbon content and Teijin planning to mass-produce 100% bio-based PC by 2025 [7]. - Mitsubishi Chemical has been producing bio-based materials since 2015, utilizing isosorbide in various automotive components, showcasing the competitive edge of international players in the bio-based PC market [7]. Group 4: Industry Challenges and Opportunities - The Chinese PC industry faces a challenge of "high-end shortage and low-end surplus," with 2024 production capacity projected at 3.81 million tons, accounting for 48% of global capacity, while 70% of high-end products are reliant on imports [7]. - The advancements by Sinopec and the local production efforts by Shengtong Juyuan represent critical steps in addressing these challenges and enhancing the domestic bio-based PC market [8].

Core Insights - The chemical new materials industry is evolving towards high-performance materials, green low-carbon production, and intelligent manufacturing processes, with bio-based materials emerging as a prominent sector [2] - A collaboration between Kunlun Engineering and Puyang Shengtong Juyuan New Materials has led to the development of bio-based polycarbonate (PC), marking a significant advancement in domestic production capabilities [2][3] - The project aims to replace traditional bisphenol A with renewable isosorbide, resulting in a product with high transparency and potential applications in various high-value markets [2][5] Group 1: Bio-based Materials Development - Bio-based materials, such as bio-based nylon and LCP, have gained significant market attention, with companies like Haizheng Bio-materials and Kasei Biotech leading the way [2] - The bio-based PC production facility is set to be the largest in China, with a successful launch planned for February 2025, filling a domestic gap in the market [2][3] - The unique molecular structure of the new bio-based PC allows for high surface hardness and excellent optical properties, making it suitable for applications in optical lenses and automotive parts [2][5] Group 2: Technological Challenges - Key technological challenges include designing high-activity catalytic systems, enhancing the melt polycondensation process, and achieving precise control over copolymer structures [3] - The industry is also exploring alternatives such as bio-based bisphenol A and bio-based dimethyl carbonate (DMC) to replace traditional monomers [5][6] - The development of high-performance catalysts for DMC synthesis has been achieved, indicating progress towards fully bio-based polycarbonate production [5] Group 3: Market Dynamics - The current production capacity of polycarbonate in China is 3.81 million tons, with a self-sufficiency rate of 75%, but high-end products still rely heavily on imports [6] - The bio-based polycarbonate is not a direct substitute for traditional PC but represents an upgrade towards high-end applications, addressing the current market's low-end surplus [6] - Companies like Covestro and Mitsubishi Chemical are leading the global market in bio-based PC innovations, with plans for mass production of 100% bio-based products by 2025 [6][7] Group 4: Strategic Directions - China National Petroleum Corporation (CNPC) is focusing on new materials and biotechnology as key development areas, emphasizing a transition towards clean energy and sustainable materials [7][8] - The strategic plan includes advancing the development of high-end polyolefins, specialty fibers, and high-performance synthetic rubbers [8] - CNPC aims to leverage its existing oil and gas infrastructure to support the growth of renewable energy and new material sectors [8]

Core Viewpoint - Recent strategic moves by Japanese chemical companies, particularly Asahi Kasei and Mitsui Chemicals, indicate a significant shift in their business operations, focusing on restructuring and transitioning towards sustainable materials to adapt to challenging market conditions [2][3]. Group 1: Mitsui Chemicals' Business Adjustments - Mitsui Chemicals is considering the spin-off of its core Basic and Green Materials (B&GM) division, aiming to establish an independent entity by around 2027 [2]. - The B&GM division includes critical production areas such as petrochemical products, basic chemicals, and polyurethane raw materials, which are essential for various industries [2][3]. - The restructuring is part of Mitsui Chemicals' long-term plan "VISION 2030," which emphasizes business portfolio transformation and strategic alliances in specialty chemicals [3]. Group 2: Market Challenges and Strategic Responses - The company faces severe profitability challenges due to declining domestic demand in Japan and increasing competition from new overseas plants [3]. - Mitsui Chemicals has announced plans to reduce the production capacity of its TDI plant from 120,000 tons/year to 50,000 tons/year by July 2025, and to close its phenol plant in Ichihara by the 2026 fiscal year due to ongoing losses [4]. - The company is also accelerating its transition to green materials, including supplying ISCC Plus certified phenol and acetone for sustainable production [4]. Group 3: Exit from Non-Core Businesses - Mitsui Chemicals has decided to exit its fully-owned subsidiary Shimonoseki Mitsui Chemicals' nitrogen trifluoride business by March 2026, citing increased competition and rising costs as primary reasons for this decision [5].