2022 PP Supply Pattern Supposed to Change with Capacity Expansion Ongoing
Preface: China’s PP (polypropylene) capacity grew rapidly between 2019 and 2021 with a new round of capacity expansion, and the capacity was expected to reach 31,910kt/a by the end of 2021. In recent three years, state-run companies such as Sinopec, PetroChina and Sinochem conducted overall arrangements quickly for capacity expansion, and private companies, represented by Hengli Petrochemical, Zhejiang Petroleum & Chemical and Oriental Energy, also ushered in commissioning peak. The layout of the whole PP industrial chain was accelerated. In 2022, it is predicted that PP capacity will continue expanding at a high rate, and the supply pattern will continue to change.
China’s PP capacity has advanced at a quicker rate since 2019, and the growth rate remained high in 2021.
China’s PP capacity has started a new round of expansion since 2019, and it increased notably in 2020 and 2021. As of now, PP capacity has broken through 30 million mt. By the end of 2021, it is predicted that China’s PP capacity will achieve 31.91 million mt, which rose by 9.47 million mt or 42% from 2018.
As of now, newly added PP capacity was 3.1 million mt. At the end of December 2021, Zhejiang Petroleum & Chemical is supposed to put its 450kt/a unit (1# line) into production, and Huating Coal Group plans to put its 200kt/a unit into operation. Generally, it is predicted that newly added PP capacity will total 3.65 million mt in 2021. In terms of region, PP capacity expansion mainly occurred in East China, North China and Northeast China. If Zhejiang Petroleum & Chemical (Phase II) is put into use as scheduled, the newly added capacity in the above three regions will be 1,250kt/a, 850kt/a and 650kt/a separately.
China’s PP capacity is projected to continue expanding in 2022.
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