Monday 15 July 2019
 
»
 
»
Story

Global polypropylene capacity to rise 34pc by 2023

UAE, 20 days ago

Global polypropylene capacity is poised to see a considerable growth of 34 per cent from 88.57 million tonnes per annum (mtpa) in 2019 to 118.66 mtpa in 2023, led by Asia and the Middle East, according to GlobalData, a leading data and analytics company.

The company’s report, ‘Global Polypropylene Industry Outlook to 2023 – Capacity and Capital Expenditure Forecasts with Details of All Active and Planned Plants’, revealed 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 from 51.61 mtpa in 2019 to 65.33 mtpa in 2023, at an average annual growth rate (AAGR) of 5.9 per cent.

Among the countries in the region, China will add a capacity of around 11.63 mtpa by 2023. Major capacity addition will be from the active plant, Sinopec Wuhan Petrochemical Company Wuhan Polypropylene Plant 2, with a capacity of 1.10 mtpa by 2023.

Dayanand Kharade, oil and gas analyst at GlobalData, said: “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 per cent of the global capacity addition during the outlook period,” Kharade added.

GlobalData identifies the Middle East as the second highest region in terms of polypropylene capacity addition, growing at an AAGR of 11.8 per cent from 9.22 mtpa in 2019 to 14.80 mtpa in 2023.

Most polypropylene capacity additions will be from Iran with a capacity of around 2.76 mtpa by 2023. Major capacity addition will be from an announced plant, Jam Polypropylene Company Assaluyeh Polypropylene Plant 2, with a capacity of 0.55 mtpa by 2023.

Within Former Soviet Union (FSU), polypropylene capacity is expected to increase from 2.76 mtpa in 2019 to 6.24 mtpa in 2023, at an AAGR of 20.4 per cent. Among countries, Russia will add around 2.53 mtpa capacity by 2023. 

Africa will be the fourth highest region, growing at an AAGR of 25.6 per cent from 1.49 mtpa in 2019 to 4.15 mtpa in 2023. Egypt will lead in Africa with contribution of around 1.33 mtpa by 2023. Major capacity addition will be from an announced plant, Tahrir Petrochemicals Company Ain Sokhna Polypropylene Plant, with a capacity of 0.88 mtpa by 2023.

Polypropylene capacity in North America is expected to grow at an AAGR of 5 per cent from 8.97 mtpa in 2019 to 10.95 mtpa in 2023. The US is forecast to be the top country in the region with capacity additions of 1.15 mtpa 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. – TradeArabia News Service




Tags:

More Industry, Logistics & Shipping Stories

calendarCalendar of Events

Ads