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Plastic Granule Frenzy, COLOWE Orders Repeatedly: Reshaping Granulation Value in Price Storm

Introduction

When the global plastic pellet market is plunged into an unprecedented price frenzy, the cost pressure and transformation anxiety of manufacturing companies are rising simultaneously. Under the combined influence of fluctuations in crude oil prices, geopolitical conflicts, and global carbon reduction policies, the price of plastic pellets has maintained high volatility for several consecutive quarters since 2024. The granulation industry, where raw material costs often account for over 60%, is standing at the crossroads of profit and survival.

In this context, the order volume of Nanjing Kelongwell Chemical Machinery Co., Ltd. (hereinafter referred to as "COLOWE") has risen against the trend. The logic behind it is not complicated: when particles become "hard currency", the efficiency, energy consumption, and product quality of the granulation process directly determine the lifeline of downstream manufacturers. With the core technological advantages of co rotating twin screw extruders and high-efficiency extruders, COLOWE is helping new and old customers around the world achieve value "distillation" of every plastic particle through technological upgrades in the era of high raw material prices.

KLWE twin screw extruder


1. Granulation in the Eye of the Storm: Rebalance of Cost and Efficiency
Industry background: When particle prices break through the profit and loss line

According to the ICIS 2025 Q1 Global Plastics Recycling Report, a white paper on the international recycled plastics market, the spot prices of some engineering plastic pellets increased by over 34% in early 2025 compared to the same period in 2023, due to the tight supply of upstream petrochemical raw materials and the expected impact of the EU Carbon Border Adjustment Mechanism (CBAM). For plastic product companies, this means that relying solely on bargaining at the purchasing end is no longer sufficient to absorb costs.

In such a market environment, the performance of granulation equipment has been pushed to the forefront. Traditional single screw equipment is difficult to control the production cost per ton while ensuring the performance of the finished product due to high energy consumption and insufficient dispersion and mixing ability. The high-efficiency extruder series launched by COLOWE, with its excellent energy efficiency ratio, is rewriting this situation.
Data support: Comparative tests conducted by the COLOWE Technology Center show that using its new co rotating twin screw extruder for PET regeneration granulation reduces unit energy consumption by 18.6% compared to traditional equipment, and the residence time distribution of materials in the barrel is narrower, effectively avoiding thermal degradation of thermosensitive materials.

 

2. Technological deconstruction: Why "co directional twin screw" has become a hard currency under the price frenzy

In the cycle of continuous increase in particle prices, the "high output, low loss" attribute of equipment directly translates into customers' profit margins. COLOWE's core competitiveness is deeply rooted in the continuous optimization of the core process of co rotating twin screw extruders.


2.1 Accurate mixing and volatilization

In the face of customers' demand to produce new materials or increase the blending ratio of recycled materials, the equipment needs to have strong dispersion and mixing capabilities. The COLOWE plastic extruder adopts a high torque gearbox and modular screw design, which can freely combine screw components according to different formulations.
·Technical term analysis: Its unique combination of "toothed disc" and "kneading block" can provide a specific torque of up to 1000 N · m, ensuring nanoscale dispersion even with a filling material ratio of up to 50%. This "efficient extrusion" capability allows customers to use inexpensive recycled materials or add environmentally friendly fillers without compromising the mechanical properties of the finished product, such as tensile strength and impact strength, effectively offsetting costs when particle prices rise.


2.2 The underlying logic of environmental compliance

For international customers who pursue environmental protection, the EU's Packaging and Packaging Waste Regulation (PPWR) imposes mandatory requirements on the content of recycled materials. COLOWE's equipment incorporates environmental protection concepts from the beginning of its design.
·Q&A session:
Q: In the context of increasingly stringent environmental regulations, how can COLOWE's equipment help customers achieve compliance?
A: Our co rotating twin screw extruder is equipped with a multi-stage vacuum exhaust system, which can efficiently remove low molecular weight volatile organic compounds (VOCs) and moisture from the regenerated material. After testing by the third-party testing agency SGS, the rPET particles processed by the COLOWE production line have a stable odor level below 3.0, fully meeting the EU standards for the use of recycled materials in food contact. This is not only granulation, but also purification of material quality.


3. International perspective: Lowering the technical barrier for first-time visitors

The order boom of COLOWE not only comes from old customers seeking equipment updates, but also from a large number of international new customers entering the granulation field for the first time. They have either shifted from simply purchasing granules to a combination of "self-produced+outsourced" models, or attempted to recycle factory waste internally. For this type of customer, high cost-effectiveness and ease of operation of the equipment are crucial.


Simplified operational logic

The COLOWE high-efficiency extruder is equipped with a PLC intelligent control system as standard, which enables "one click start stop" and adaptive adjustment of process parameters. For customers who are new to extrusion equipment, this greatly shortens the ramp up period from equipment installation to stable production.


·Key question answer:
Q: As a company that is trying to build its own granulation production line for the first time, we are most concerned about the complexity of operation and high maintenance costs. How can COLOWE solve this problem?
A: COLOWE offers not only equipment, but a turnkey solution. We have established a standardized SOP from the initial debugging of the formula process to the training of operators. Meanwhile, our plastic extruder adopts a modular cylinder design, allowing customers to replace or clean screw combinations within 2 hours without the need for professional tools. This' high fault tolerance 'design ensures that even without experienced engineers, the production line can maintain stable operation 24 hours a day.

KLWE twin screw extruder


4. The Value Behind Data: Trends from Orders

Despite the impact of fluctuations in raw material prices, equipment investment in the global plastic processing industry has become cautious at one point, but recent sales data from COLOWE shows strong structural growth.
·Core data: In the first quarter of 2025, the order volume of co rotating twin screw extruders exported by COLOWE to Southeast Asia, the Middle East, and South America increased by 67% year-on-year. Among them, equipment used for producing high-end degradable plastics (PBAT/PLA blend modification) and high filling environmentally friendly masterbatch accounts for over 40%.
·Market insight: This trend indicates that in the face of rising plastic pellet prices, leading companies are no longer simply "holding onto their wallets", but are choosing to restructure their cost structure by introducing efficient extruders. As the Technical Director of COLOWE said at a recent industry summit, "When raw materials become variables, process equipment must become quantitative. What we provide is precisely this certainty

5. Conclusion: Anchoring long-term value in the frenzy

The frenzy of plastic pellets will eventually subside, but the pursuit of efficiency, environmental protection, and stability in the manufacturing industry is eternal. The continuous orders from COLOWE are not accidental market dividends, but stem from its deep cultivation in the field of plastic extruders and a profound understanding of the proposition of "how to make every kilowatt hour of electricity and every piece of material generate greater value".

For international customers who pursue high cost-effectiveness, are committed to environmental transformation, or have just embarked on the path of granulation, COLOWE is not only an equipment supplier, but also a technology partner that can cross the price cycle. In the future where material cost fluctuations become the norm, choosing a co rotating twin screw extruder with the characteristics of "high torque, low energy consumption, and strong mixing" may be a key step for enterprises to shift from passively bearing price increases to actively controlling material costs.

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