Northeast China Sees Fierce Competition on Intensive PP Capacity Expansion
Highlights
As the main traditional producing area of plastic feedstock, Northeast China has a strong industrial foundation. With the planning of the 7 major petrochemical industry bases in 2015, the petrochemical and plastic industries in the Northeast China ushered in a new pattern. In particular, in 2019, the commissioning of Hengli Petrochemical in 2019 broke the pattern that polypropylene (hereinafter referred to as PP) resources were mostly supplied by PetroChina. In 2020, Liaoning Bora and Heilongjiang Longyou Petrochemical put newly added units into operation, further bringing new competitiveness to Northeast China PP producers.
Besides Northeast China, North China, East China, South China and Northwest China also saw capacity growth in the recent five years. In 2020, with newly added capacity at Hengli Petrochemical phase II, Liaoning Bora and Heilongjiang Longyou Petrochemical to be released, it is predicted that PP capacity will total at 4,020kt/a in Northeast China, which rose by 62.75% Y-O-Y.
