September 12, 2024 – China’s polypropylene industry is embarking on a new peak of capacity expansion in 2024. Over the past five years, the industry has witnessed a steady growth in capacity with an average increase rate of 11.71%. However, the outbreak of the COVID-19 pandemic in 2020 led to delays in some enterprises’ planned production increases, resulting in a slowdown in capacity growth. With the full lifting of pandemic restrictions in 2023, the polypropylene industry is once again embracing a wave of expansion.
According to the Color Masterbatch Industry Network, China’s polypropylene production capacity has exceeded 42 million tons in the first half of 2024, representing a year-on-year increase of approximately 7% and a remarkable growth of 32% compared to 2020. Despite the gradual slowdown in domestic polypropylene demand and the emergence of oversupply issues,加剧 market competition, exports have become a critical avenue to alleviate the supply-demand imbalance.
Data shows that as of July 2024, China’s total polypropylene exports reached 1.4179 million tons, a significant increase of 84.84% compared to the same period last year, with an additional volume of 650,800 tons. It is worth mentioning that in March of this year, China transformed into a net exporter of polypropylene for the first time, setting a new historical record. Currently, China’s polypropylene exports are showing strong growth momentum, and domestic major producers are actively expanding export channels, indicating promising prospects for sustained net exports of polypropylene in the future.