September 03, 2024 – Driven by the era of large-scale refining and domestic demand-boosting policies, China’s polyethylene (PE) production capacity has been increasing year by year, albeit at a slower rate. By the end of 2023, China’s PE production capacity had reached 31.558 million tons. Among various PE products, the output growth of high-density polyethylene (HDPE) film and piping materials has been particularly notable, while low-density polyethylene (LDPE) production has remained relatively stable due to a smaller increase in capacity.
From a geographical perspective, the northwest region has traditionally led China’s PE production capacity. However, in recent years, new capacity additions have gradually shifted from production areas to consumption areas, namely East China and South China. This shift has partially addressed issues related to cross-regional transportation costs and time. According to statistics, new capacity additions in consumption regions account for 67.35% of the total new PE capacity.
Remarkably, the output growth of HDPE film and piping materials has been significant, especially in East China and South China, where HDPE film output has increased by 385.68% and 108.61%, respectively. This growth is attributed to contributions from companies like Shanghai Petrochemical, Zhenhai Refining and Chemical, Lianyungang Petrochemical, and the newly operational Guangdong Petrochemical.
Looking ahead, according to Zhuochuang Information’s statistical data, China will witness a wave of new PE capacity releases in the second half of 2024. These new facilities, concentrated in North China, primarily focus on HDPE and linear low-density polyethylene (LLDPE) products. If these units come online as scheduled, the total production capacity in North China will increase to 8.51 million tons, surpassing the northwest region and ranking first nationwide. However, this will intensify competition for HDPE and LLDPE products within North China and potentially lead to homogenization of general-purpose materials. To address this, manufacturers need to deepen their research and development efforts in specialized materials.
According to the Color Masterbatch Industry Network, with the release of new capacity, market competition will further intensify. To stand out in the market, companies must continuously innovate, improve product quality, and strengthen research and development in specialized materials. Simultaneously, they need to focus on environmental protection and sustainable development to meet market and consumer demands.