Global polypropylene capacity increased at a Compound Annual Growth Rate (CAGR) of 5.2% from 2003, reaching 65 million tons per year (mmty) in 2013, and is expected to continue rising to 86 mmty by 2018, at a slightly higher CAGR of 5.8%, according to research and consulting firm GlobalData.
The company’s latest report states that China and Russia will be the leading contributors to future polypropylene capacity increases, and will account for a combined 45% of global additions over the next five years.
Carmine Rositano, GlobalData’s Managing Analyst covering Downstream Oil & Gas, says, “A demand-side push is driving additional capacity in China, forcing it to produce more domestic polypropylene.
“Indeed, China will lead new global polypropylene capacity increases over the next five years, as its goal of self-sufficiency drives 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.
Rositano explains, “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 polypropylene sector to cater to the domestic market and replace imports.
Source:
http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_id=166295
