Global Data said that driven by Asia and the Middle East, global polypropylene production is expected to increase by 34% from 88.57 million tons per year in 2019 to 118.6 million tons per year in 2023.
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According to the company’s report Global Prospects for Polypropylene Industry 2023 – Prospects for Capacity and Capital Expenditure, there are about 108 polypropylene plants planned and announced for production in the next four years, mainly in Asia and the Middle East.
Asia’s polypropylene production capacity is expected to increase from 51.61 million tons per year in 2019 to 65.33 million tons per year in 2023, with an average annual growth of 5.9%. In 2023, China’s production capacity in the region will increase by about 11.63 million tons per year. The main new capacity will come from Wuhan Polypropylene Plant No. 2 of Sinopec Wuhan Petrochemical Co., Ltd. and will reach 1.1 million tons per year by 2023.
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Dayan and Kharade, oil and gas analyst at GlobalData, said: “As urbanization progresses and income levels continue to rise, demand for polypropylene, mainly from packaging, is boosting large-scale capacity growth in China and India. These two countries are expected to account for 40% of global capacity growth in the outlook period.
GlobalData identified the Middle East as the second highest area for PP production growth, with an average annual growth rate of 11.8% from 9.22 million tons per year in 2019 to 14.8 million tons per year in 2023. The main new capacity will come from an announced plant, Jam Polypropylene’s Assaluyeh Polypropylene Plant 2, which will reach 550,000 tons per year by 2023.
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By 2023, Russia will increase production capacity by about 2.53 million tons per year in all countries.
Africa will be the fourth highest region, with a compound annual growth rate of 4.15 million tons by 2023, up from 1.49 million tons in 2019. By 2023, Egypt’s contribution to Africa will reach about 1.33 million tons, ranking first in Africa. The main additional capacity will come from the Ain Sokhna polypropylene plant of Taril Petrochemical Company, which will reach 880,000 tons per year by 2023.
North American polypropylene production is expected to grow at an annual rate of 5%, from 8.97 million tons per year in 2019 to 1.95 million tons per year in 2023. By 2023, the United States is expected to be the fastest-growing country in the region, with an additional capacity of 1.15 million tons per year.