Market Forecast for 2024 The PLA market in 2024 will see feedstock prices, especially for corn, trend downward from the 2023 level as the United States Department of Agriculture has anticipated its corn yields to increase from the previous year, which will have a positive impact on the cost. The overall bioplastic market is projected to show improvements compared to the previous year, attributable to the expected economic recovery in 2024, coupled with the positive impact of clear packaging policies and the EU Packaging and Packaging Waste Directive, which promote the use of compostable plastics. However, a return to normal market conditions is expected to take 1-2 more years. In addition, with the increasing envi ronmental awareness and consciousness, the global market for these products is anticipated to enjoy a steady growth in the long term, driven particularly by the rising demand from emerging economies and various countries’ policies encouraging the use of bioplastics as a substitute for petrochemicalbased plastics. Also contributing to this growth will be advancements in bioplastic development, allowing bioplastics to be utilized by a more diverse range of industries to cater to eco-conscious consumers. Post-Consumer Recycled (PCR) Market Overview in 2023 The PCR market in 2023 enjoyed a positive impact from increased demand due to the sustainability policies implemented by end-product manufacturers, especially among producers of food and beverages who relied in PCR PET as feedstock, to achieve their 25-30% PCR utilization targets by 2025. However, the economic recession across various regions prompted downstream manufacturers to delay their decision to adopt PCR HDPE for packaging production as it involved higher costs. As a result of these factors, the global PCR PET demand surged by 1 million tons to 9.6 million tons, representing a 12% increase, while the global demand for PCR HDPE rose only by 0.2 million tons to 6 million, or 3.5% from 2022. As such, the overall PCR demand in 2023 grew less than projected. Market Forecast for 2024 The PCR market in the first half of 2024 will continue to face pressure from the economic slowdown in various regions, particularly in Europe and the United States, affecting the price competition in such regions. For the Southeast Asian market, as the market itself as well as the development of PCR mandates are still in the inchoate state, the growth in demand will likely be moderate. In addition, GC has projected increased competition in the food and beverage market that utilizes PCR PET, as other competitors in Thailand have gradually obtained certification from the Food and Drug Administration (Thai FDA). As for PCR HDPE, for which the demand is primarily tied to commodity goods, plans to utilize it in place of virgin resin are still shrouded in uncertainties. Therefore, the demand is projected to see moderate growth in Southeast Asia, and the product must instead be exported to other regions, such as Europe, the U.S., the Middle East, and India. Value Added Oleochemicals (VAO) Market Overview in 2023 The methyl ester (ME) market in 2023 improved from the previous year, with the demand rising by 0.2 million tons to approximately 1.39 million tons per year. The upswing could be attributed primarily to the government’s policy to maintain the biodiesel blending ratio at B7 throughout the year. However, as the biodiesel demand continued to be depressed by a slump in economic activities in line with the global economy, the domestic consumption of high-speed diesel fell 3% year-on-year, while the production capacity saw a slight increase due to an addition of approximately 115,000 tons per year in output by other players, intensifying the competition. The overall utilization rate of the industry in 2023 stood at 40-45%, while the domestic ME price slid to 39.22 baht per kilogram, a 14.39 baht per kilogram decrease, due to falling domestic prices and the restructured ME price scheme stipulated by the Energy Policy and Planning Office (EPPO), the Ministry of Energy, which came into effect on October 3, 2022. 75 PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Form 56-1 One Report 2023
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