2024 Major Events in PX Industry
In 2024, China’s PX industry experienced significant changes amidst geopolitical tensions, a tense global economic climate, and turbulent crude oil market conditions. These complex internal and external factors led to more instabilities in the PX market’s industrial and supply chains.
1. The 40,000kt/a project at Shandong Yulong Petrochemical is about to be completed.
The 40,000kt/a integrated refining and chemical project at Shandong Yulong Petrochemical nears full completion in construction. August 2024 is the key stage for this project. The Shandong Yulong Petrochemical integrated refining and chemical project was implemented in two phases. In the first phase, Shandong Yulong Petrochemical utilized imported crude oil to construct a 20,000kt/a refining, 3,000kt/a mixed aromatics, and 3,000kt/a ethylene integration project, including the main project, storage and transportation engineering, and public auxiliary engineering. The 40,000kt/a refining and chemical integration project is equipped with two ethylene units. The first ethylene unit is scheduled for trial operation in Q4 2024 and the second unit may be started in 2025. A new 1,000kt/a MEG unit will also come online in Q2 2025. The completion of this project will significantly alter the product structure of Shandong’s local refineries, characterized by singularity and a low proportion of chemicals, enhancing the competitiveness of the local chemical industry and driving the industry towards high-end and diversified.
2. The PX capacity surpassed 44,000kt/a in 2024.
In 2024, China had a total of 26 PX enterprises, the same as in 2023. Due to industrial restructuring, the expansion of PX capacity was limited. Only one existing enterprise expanded its capacity this year. Hengli Petrochemical’s 2,500kt/a PX unit was debottlenecked to 2,600kt/a, bringing the total annual capacity to 44,010kt/a, increasing by only 0.46% YoY. However, although capacity expansion slowed, the capacity of existing units significantly improved depending on downstream consumption. The estimated total PX output in 2024 is expected to be 37,390kt, increasing by 12.27% YoY.
3. The PTA projects at Sinopec Yizheng Chemical Fiber came online.
On April 11, 2024, the world’s largest PTA production unit was officially put into operation at Sinopec Yizheng Chemical, marking a significant step forward in Sinopec’s efforts to transform and upgrade the aromatic industry chain and expand into high-end new materials. This 3,000kt/a project commenced construction in July 2021. As Sinopec’s first 3,000kt/a PTA project, it represents an investment of over 5 billion RMB and is a significant project for both Sinopec and Jiangsu. Utilizing Invista’s latest short-process technology, the unit not only optimizes the industrial structure but also creates synergies with downstream projects such as polyester chip, polyester bottle chip and polyester staple fiber, enhancing the overall advantages of the industrial chain. The project has boosted effective PTA capacity to 81,800kt, further solidifying its market leadership.
4. The 1,500kt/a PTA unit at Formosa PS (Ningbo) came online.
Formosa Industries (Ningbo)’s PTA unit successfully produced PTA products on March 29, passing strict quality inspections with a 100% pass rate. With the new unit’s smooth operation, Formosa Industries (Ningbo)’s total PTA capacity has increased to 2,700kt/a. As a key production base for Formosa Plastics Group in China, Formosa Industries (Ningbo) holds a significant advantage in industrial chain layout. The company not only operates a 21,000kt/a oil refining project but also boasts a total PX capacity of 2,020kt/a. The project further strengthened its competitiveness in terms of raw material supply and production integration.
5. The project at Hainan Yisheng Petrochemical has been completed.
The Hainan Yisheng Petrochemical Phase II project, with a total investment of approximately 8 billion RMB, includes the construction of a 2,500kt/a PTA unit, a 1,800kt/a PET unit and the expansion of a wharf. Upon completion, Hainan Yisheng Petrochemical will see an additional output value of about 18 billion RMB. In 2024, Yisheng Dahua Petrochemical added 1,400kt/a capacity of polyester chip, while Hainan Yisheng Petrochemical added 1,200kt/a, totaling 2,600kt/a. By year-end, Yisheng Group’s annual polyester chip capacity will reach 5,900kt/a, and its total PTA capacity will reach 21,200kt/a (including 2,000kt/a of long-idled capacity). The expansion aims to solidify the enterprise’s leading position in the industry and enhance its market share. In addition, the expansion can address the issue of PTA oversupply effectively, optimizing resource allocation.
6. NDRC released the “Guidance Directory for Industrial Structure Adjustment (2023 Draft for Comments)”.
The “Guidance Directory” includes 13 provisions for restricted chemical products, involving a total of nearly a hundred types of chemicals. This includes production units with an annual capacity of less than 10,000kt for atmospheric and vacuum distillation, less than 1,500kt for catalytic cracking, less than 1,000kt for continuous reforming, and less than 1,500kt for hydrocracking. There are clear restrictions on the establishment of new projects of this kind. The upgrade in approval and supervision for new projects has raised the entry barrier for new PX market players, further demonstrating the trend toward the development of large-scale integrated projects with significant competitive advantages. This is more conducive to the orderly and healthy development of the PX industry.
7. Mexico issues anti-dumping review ruling on Chinese PFY.
On July 3, 2024, the Mexico Economy Ministry issued a public announcement regarding the anti-dumping sunset review ruling on PFY originating from China and India. In light of the absence of evidence indicating the existence of the PFY industry in Mexico, the decision was made to cancel the anti-dumping duty of 0.532 USD per kilogram on imports from China and India. The affected products are classified under the TIGIE tax number 5402.33.01. The announcement took effect the day after its publication. Following the cancellation of the anti-dumping duty, the export costs for Chinese PFY enterprises to Mexico were reduced, enhancing the price competitiveness of their products in the Mexican market, with expectations of a rebound in export volumes. In August 2024, the export volume reached 9.7kt, increasing by 20.01% MoM. As of September 2024, the total PFY export volume from China to Mexico amounted to 95.3kt. Overall, domestic filament enterprises are expected to regain market share in this important overseas market, which is beneficial for expanding their overseas market layout and increasing export revenue.
8. Pakistan initiates anti-dumping investigation on Chinese PFY.
On May 24, 2024, the National Tariff Commission of Pakistan issued Announcement No. ADC65/2024/NTC/PFY, stating that in response to the applications submitted by Pakistani producers Gatron Industries Limited and Rupali Polyester Limited on March 29, 2024, an anti-dumping investigation was initiated on PFY originating from or imported from China. The dumping investigation period for this case is from January 1, 2023, to December 31, 2023, and the injury investigation period is from January 1, 2021, to December 31, 2023. The affected products are classified under the Pakistani tax numbers 5402.3300 and 5402.6200. The preliminary ruling is expected to be released 60 to 180 days after the case is filed. As of now, the results of Pakistan’s anti-dumping investigation on Chinese PFY have not been announced. However, in 2023, the total export volume of PFY from China to Pakistan reached 343.4kt, accounting for 4.07% of the total. As of September 2024, the total export volume to Pakistan reached 270.4kt, increasing by 3.91% YoY. China's PFY exports may face numerous obstacles and challenges.
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