China and Russia lead global PP capacity expansion by 2018

LONDON, UK- GLOBAL polypropylene (PP) capacity expanded at a Compound Annual Growth Rate (CAGR) of 5.2% from 2003 to reach 65 million tonnes/year (mmty) in 2013. This figure is projected to rise further to 86 mmty by 2018, at a slightly higher CAGR of 5.8%, according to research and consulting firm GlobalData.

In its latest report, GlobalData also noted that China and Russia will lead other producing countries in future PP capacity increases, and will account for a combined 45% of global additions over the next 5 years. In particular, China will see growing domestic demand for PP and will move towards self-sufficiency with 7.48 mmty of additions, of which 97.6% will come from new plants and the remainder from the expansion of existing facilities. GlobalData forecasts that the country will account for 62.4% and 35.5% of planned Asian and global capacity additions by 2018, respectively.

Russia will be the second largest contributor to growth, mainly due to the country’s recent diversification into the petrochemicals sector, which has seen substantial investment in bulk polymer industries, such as polyethylene and polypropylene. Until 2012, Russia’s polypropylene capacity was only 0.65 mmty, but this increased to 1.33 mmty in 2013 and is further expected to reach approximately 3.48 mmty by 2018, with all additions coming from new plants.

GlobalData also states that Venezuela and India will be the respective third and fourth largest contributors to capacity increases over the next five years, with both countries investing in the PP sector to cater to the domestic market and replace imports.Nike Air Max 97