2023 China Propylene Capacity Review
China’s propylene capacity keeps expanding in 2023, and it is estimated that China’s propylene capacity will probably total 64.87 million mt/a, up 15.72% Y-O-Y. Capacity expansion changes the overall propylene supply pattern. However, with propylene supply becoming surplus, both prices and profits from producing propylene went down. Accordingly, the startup time of some new units delayed, alleviating the overall propylene supply pressure.
2019-2023 China Propylene Capacity Comparison
The number of China’s propylene producers further rose. The number of China’s propylene producers reached 180 in 2023, up 7 Y-O-Y. The number of China’s propylene producers rose, so the propylene industry concentration ratio decreased somewhat. In 2023, it is estimated that the proportion of propylene capacity at CR10 enterprises may be about 22.11%, down 2.47% Y-O-Y. Meanwhile, the enterprise scale enlarged gradually. The number of propylene producers with propylene capacity surpassing 1 million mt/a reached 9 in 2023. In the future, China’s propylene capacity will probably be concentrated in leading enterprises, and it may be tougher for small and medium-sized enterprises to develop. Besides, the industry reshuffle will probably accelerate.
China’s newly added propylene capacity was concentrated in South China, and most newly added propylene units adopted PDH technology. Moreover, most newly added propylene units were matched with downstream units, and the PP granule capacity was the highest. As of the end of October 2023, the newly added propylene capacity in South China was 3,380kt/a, taking up 54% of the total newly added capacity. Meanwhile, the newly added PDH capacity occupied 58% of total newly added propylene capacity.
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