PLA prices in the Netherlands surged in September due to production disruptions and increased demand

According to a report compiled by the Institute of Biodegradable Materials, in early September, due to increased demand and supply challenges, the price of polylactic acid (PLA) in the Netherlands rose significantly. The increasing attention to sustainable materials, especially in the packaging industry, has driven higher demand for PLA. At the same time, the interruption of production factory operations and the rise in raw material costs (such as lactic acid) have put pressure on the supply chain, leading to a significant upward trend in PLA prices.

The packaging industry was the core of the PLA demand growth in early September, driven by consumers and regulatory agencies pushing for environmentally friendly alternatives to traditional plastics. The industrial sectors such as 3D printing have also promoted the consumption of polylactic acid. Despite these favorable demand trends, supply is limited by manufacturing difficulties and rising costs of lactic acid, which is a key component in polylactic acid production. During this period, this supply-demand imbalance pushed up the price of PLA.

The packaging industry in the Netherlands has benefited from Bioworks' launch of PlaX fabric, a sustainable textile made from a blend of cotton and plant-based polylactic acid (PLA) from sugarcane. This innovative fabric has antibacterial properties, higher durability, and comfort, making it a green alternative to synthetic fibers. TotalEnergies Corbion's Luminy PLA is known for its 75% lower carbon footprint than traditional plastics and is part of this development. Through collaboration with Nagase, TotalEnergies Corbion plans to expand the use of PLA in Japan to further achieve climate goals and promote sustainable development. Please refer to this trading company for details and obtain the distribution rights for Total PLA in Japan!

In addition, TU/Ecomotive's Lina electric vehicle showcased a lightweight chassis made of a bio composite material of linen and PLA from NatureWorks. EconCore's technology utilizes 100% biodegradable PLA to promote low-cost production of thermoplastic honeycomb structures for vehicles. This bio composite material provides a strength to weight ratio comparable to fiberglass, reduces the carbon footprint of vehicles, and supports environmentally friendly materials.

On the supply side, the production interruption of PLA manufacturing plants has brought significant challenges. Technical issues and unexpected factory shutdowns have limited the availability of PLA. Driven by higher production costs, the stable cost of lactic acid further exacerbates the supply situation. In addition, the continuously rising freight rates and transportation delays have exacerbated this problem. Port congestion at European ports (including Dutch ports) has exacerbated logistics challenges, while high sea freight rates from Asia to Northern Europe have increased transportation costs and affected PLA prices.

In August 2024, the annual inflation rate in the Netherlands slightly decreased to 3.6%, lower than the 3.7% in July. Although the rate of price increases for transportation, alcoholic beverages, and clothing has slowed down, the prices of food and catering have continued to rise. The monthly consumer price growth has slowed down to 0.3%, lower than the 1.5% in July. In the first week of September, the euro appreciated by 0.30% against the US dollar, affecting import costs and currency exchange dynamics in international trade.

Looking ahead, the price outlook for PLA in the Netherlands remains cautiously optimistic. Although the demand for PLA is expected to remain strong, especially in the packaging and 3D printing fields, the alleviation of production interruptions and the stabilization of raw material costs may help balance the market. However, the continued emphasis on sustainability and bio based alternatives may sustain demand growth and support polylactic acid prices in the short term.