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China gears up for new PP start-ups in H2 2019

by Manolya Tufan -
  • 03/06/2019 (04:17)
China’s PP capacity is set to grow further in line with the new start-ups in the second half of the year, strengthening the country’s position in self-sufficiency. If H2 start-ups can be completed as expected, an additional capacity of around 5 million tons/year will be added to the China’s total PP capacity.

Year-to-date additions reached more than 1 million tons

According to ChemOrbis PP Production News , Hengli Petrochemical started up its new 450,000 tons/year PP plant in China on April 27.

Qinghai Salt Lake Industrial’s 160,000 tons/year unit, Zhejiang Satellite’s 150,000 tons/year unit and Jiutai Energy’s 350,000 tons/year unit were also brought on stream so far this year.

As for the new capacities that were on schedule to be launched from Q2 onwards, Dong Guan Grand Resource’s two new PP lines with a combined capacity of 600,000 tons/year were expected to be started up in April 2019.

Zhongan Lianhe’s 350,000 tons/year unit, Qinghai Da Mei’s 400,000 tons/year unit, and Shenzhen Ju Zheng Yuan 600,000 tons/year unit were expected to come on stream by May. China’s Ningxia Baofeng’s 300,000 tons/year plant is expected to start operations in June, meanwhile.

New PP capacities to start up in Q4

There will be more capacity additions in the final quarter of this year. China is bracing for a new wave of PP capacity totaling nearly 5 million tons/year, although some players are highly doubtful that they will be fully achieved.

To see further details about the most updated news of new capacities as well as shutdowns and restarts around the globe at a glance, please visit ChemOrbis PP Production News .

Local supplies are already high on thin trading

In China, domestic PP and PE supplies have been high since the end of the Chinese New Year, mainly due to the concerns over US-China trade tensions that kept buyers on the sidelines. Thereby, the recent turnarounds have contributed little to reduce supply glut.

China’s local polyolefin supplies might increase further considering the upcoming start-up of the above mentioned plants and new capacities as well as the low season for many PP applications, according to regional players.
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