China and India to lead global polypropylene capacity additions
Published by Tom Mostyn,
Editorial Assistant
Hydrocarbon Engineering,
The global polypropylene capacity is poised to see considerable growth over the next four years, potentially increasing from 83.44 million tpy in 2019 to 132.49 million tpy in 2024, registering a total growth of 59%, led by Asia and the Middle East. In Asia, China and India are poised to potentially lead the global polypropylene capacity additions, says GlobalData.
GlobalData’s report, ‘Global Polypropylene Industry Outlook to 2024 – Capacity and Capital Expenditure Forecasts with Details of All Active and Planned Plants’, reveals that around 128 planned and announced plants are scheduled to come online, predominantly in Asia and the Middle East, over the next four years.
Polypropylene capacity in Asia is expected to increase from 47.25 million tpy in 2019 to 78.04 million tpy in 2024, at an average annual growth rate (AAGR) of 10%. Among the countries in the region, China will add a capacity of around 18.01 million tpy by 2024. Major capacity addition will be from the active plant, Zhejiang Petrochemical Daishan Polypropylene Plant 1, which will have a capacity of 900 000 tpy.
Dayanand Kharade, Oil and Gas Analyst at GlobalData, says: “China is expected to dominate the global polypropylene market in the mid-term with both the biggest number of new projects and the largest absolute capacity expansion driven by economic growth. The country is forecast to account for 59% of the Asian capacity addition and 37% of the global capacity addition during the outlook period.”
GlobalData identifies the Middle East as the second highest region in terms of polypropylene capacity additions in the global polypropylene industry, increasing from 9.38 million tpy in 2019 to 18.13 million tpy in 2024, at an AAGR of 13.2%. Most of the polypropylene capacity additions will be from Iran, with a capacity addition of around 4.18 million tpy by 2024. Major capacity addition will be from an announced plant, Jam Polypropylene Company Assaluyeh Polypropylene Plant 2, with a capacity of 550 000 tpy by 2024.
Within the Former Soviet Union, polypropylene capacity is expected to increase from 2.49 million tpy in 2019 to 5.46 million tpy in 2024 at an AAGR of 15.7%. Among countries, Russia will add around 2.37 million tpy capacity by 2024.
Polypropylene capacity in North America is expected to increase from 8.72 million tpy in 2019 to 11.55 million tpy in 2024 at an AAGR of 5.6%.The US is forecast to be the top country in the region with capacity additions of 1.75 million tpy by 2024.
Africa will be the fifth highest region, increasing from 1.52 million tpy in 2019 to 4.06 million tpy in 2024 at an AAGR of 19.7%. Egypt will lead in Africa, contributing around 1.15 million tpy by 2024. Major capacity addition will be from an announced plant, SidiKerir Petrochemicals Amiriya Polypropylene Plant, with a capacity of 450 000 tpy by 2024.
Oriental Energy Co Ltd, China Petrochemical Corp, and Kuwait Petroleum Corp will be the top three companies globally in terms of planned and announced capacity additions over the outlook period.
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/22062020/china-and-india-to-lead-global-polypropylene-capacity-additions/
You might also like
Repsol takes its multi-energy to major music festivals in Spain and Portugal
Repsol has joined forces with the six most important music promoters in Spain to jointly promote the use of different multi-energy solutions initially in 77 events.