PP capacity exceeds 48 million tons after new unit launched

On October 16, 2025, the 400kt/year PP plant of PetroChina Guangxi II successfully produced its first batch of qualified products, achieving a successful one-time startup. This is the tenth unit launched within the year, bringing the total domestic capacity of PP granule to over 48 million tons/year, specifically reaching 48.335 million tons/year. Excluding long-term idled capacity (units shut down for over one year), the effective capacity stands at approximately 45.8 million tons/year.

In 2025, with the exception of two coal-based plants, all other newly added units are oil-based. Consequently, the share of oil-based plants in the production structure has increased, while the proportions of coal-based, PDH, and propylene polymerization have decreased to varying degrees. Among these, the change in the coal-based share is minimal.

By the end of October, China's domestic PP granule capacity had expanded by 4.55 million tons/year, representing approximately 50% of the planned new capacity for 2025. Many new startups have experienced delays. While new capacity is planned for the next two months, based on currently available information, these are highly likely to be postponed until 2026.

In recent years, as the total capacity base has continued to expand, the market impact of any single new unit's commissioning has gradually diminished. However, it remains noteworthy, especially given the challenging domestic and international economic climate and the increasingly prominent supply-demand imbalances. The startup of the PP plant of PetroChina Guangxi II is expected to primarily impact the Southwest market and will also extend its influence to the South China market.