Polypropylene capacity increases to be led by China and India

The company’s report, ‘Global Polypropylene Industry Outlook to 2023 – Capacity and Capital Expenditure Forecasts with Details of All Active and Planned Plants’ reveals that around 108 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 at an average annual growth rate (AAGR) of 7.8% from 44.31 million tpy in 2018 to 65.33 million tpy in 2023. Among the countries in the region, China will add a capacity of around 11.63 million tpy by 2023. Major capacity addition will be from the plants, Zhejiang Petrochemical Daishan Polypropylene Plant 1 and Zhejiang Petrochemical Daishan Polypropylene Plant 2, each with the capacity of 900 000 tpy by 2023.

Dayanand Kharade, Oil and Gas Analyst at GlobalData, says: “Increasing polypropylene demand mainly from packaging, due to urbanisation and growing income levels, are contributing to large capacity additions in China and India. These two countries are forecast to account for 40% of the global capacity addition during the outlook period.”

GlobalData identifies the Middle East as the second highest region in terms of polypropylene capacity addition in the global polypropylene industry, growing at an AAGR of 9.5% from 9.22 million tpy in 2018 to 14.80 million tpy in 2023. Most polypropylene capacity additions will be from Iran with a capacity of around 2.76 million tpy by 2023. Major capacity addition will be from the plant, Jam Polypropylene Company Assaluyeh Polypropylene Plant 2, with a capacity of 550 000 tpy by 2023.

Within the Former Soviet Union (FSU), polypropylene capacity is expected to increase at an AAGR of 20.3% from 2.26 million tpy in 2018 to 6.24 million tpy in 2023. Among the countries, Russia will add around 2.53 million tpy capacity by 2023.

Africa will be the fourth highest region, growing at an AAGR of 20.5% from 1.49 million tpy in 2018 to 4.15 million tpy in 2023. Egypt will lead in Africa, contributing around 1.33 million tpy by 2023. Major capacity addition will be from Tahrir Petrochemicals Company Ain Sokhna Polypropylene Plant, with a capacity of 880 000 tpy by 2023.

Polypropylene capacity in North America is expected to grow at an AAGR of 4.5% from 8.72 million tpy in 2018 to 10.95 million tpy in 2023. The US is forecast to be the top country in the region with capacity additions of 1.15 million tpy by 2023.

Oil and Natural Gas Corp. Ltd, China Petrochemical Corp. and Fujian Zhongjing Petrochemical Co Ltd will be the top three companies globally in terms of planned and announced capacity additions over the outlook period.

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