18 Jun 2020
Posted in Oil & Gas
China and India to lead global polypropylene capacity additions by 2024, says GlobalData
The global polypropylene capacity is poised to see considerable growth over the next four years, potentially increasing from 83.44 million tonnes per annum (mtpa) in 2019 to 132.49 mtpa 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, a leading data and analytics company.
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 mtpa in 2019 to 78.04 mtpa 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 mtpa by 2024. Major capacity addition will be from the active plant, Zhejiang Petrochemical Daishan Polypropylene Plant 1, which will have a capacity of 0.9 mtpa.
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 mtpa in 2019 to 18.13 mtpa 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 mtpa by 2024. Major capacity addition will be from an announced plant, Jam Polypropylene Company Assaluyeh Polypropylene Plant 2, with a capacity of 0.55 mtpa by 2024.
Within Former Soviet Union, polypropylene capacity is expected to increase from 2.49 mtpa in 2019 to 5.46 mtpa in 2024 at an AAGR of 15.7%. Among countries, Russia will add around 2.37mtpa capacity by 2024.
Polypropylene capacity in North America is expected to increase from 8.72 mtpa in 2019 to 11.55 mtpa 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 mtpa by 2024.
Africa will be the fifth highest region, increasing from 1.52 mtpa in 2019 to 4.06 mtpa in 2024 at an AAGR of 19.7%. Egypt will lead in Africa, contributing around 1.15 mtpa by 2024. Major capacity addition will be from an announced plant, SidiKerir Petrochemicals Amiriya Polypropylene Plant, with a capacity of 0.45 mtpa 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.