TPP Capacity Broke Through 15,000kt/a in 2023 on the Fastest Growth
In 2023, China’s transparent PP (TPP) capacity saw the highest growth rate and broke through 15 million mt/a.
As a pioneer of high-end polypropylene (PP) products, transparent PP (TPP) has been favored by many new entrants in recent years due to the increasing market share and favorable economic benefits. In addition, the continuous breakthrough of production technology contributed to further growth of TPP capacity, and the annual average growth rate of capacity touched 24% from 2019 to 2023. In terms of trend, the TPP capacity growth rate also increased year by year over the past five years, among which, 2023 is the year with the most considerable fresh capacity. The growth rate of TPP capacity reached 39.87% in 2023, up 174.91% from 2019. Meanwhile, the number of TPP producers reached 49 in 2023, rising by 15 Y-O-Y. That suggests that the number of producers that can produce TPP materials has exceeded 50%.
With continuous acceleration of the startup of new capacity, the output of TPP materials has also shown a rapid growth trend, with an average growth rate of 14.41% over the past five years. Among them, the output grew by 17.96% YOY to 16.26 million mt in 2023, leading to more abundant supply of TPP in China. Therefore, some imported TPP cargoes were replaced. In 2024, the high price of TPP slid quickly with plentiful supply. It is predicted that PP import volume may decrease gradually in the next two years with the domestic price falling in China. Besides, TPP takes up a small proportion of the total demand for high-end materials, and the demand for high-end materials is advancing at present. PP producers may also continue developing and upgrading production technology, so TPP supply is expected to keep growing in the future.
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