According to China Chemical Information Weekly, Sinopec Guangxi Petrochemical's 400,000-ton-per-year polypropylene plant recently produced its first batch of qualified products in Qinzhou, Guangxi, achieving a successful first-time start-up. This marks China's first polypropylene facility capable of producing a full product portfolio, encompassing homopolymer, ethylene random copolymer, impact copolymer, and butene-containing series (butene random copolymer and butene-ethylene terpolymer). With over 200 product grades, it precisely meets diverse market demands for differentiated, high-quality polypropylene materials, providing premium raw material support for multiple downstream industries.

During the current expansion cycle, polypropylene capacity has undergone sustained growth, with approximately 26 million tons/year of new capacity still slated for future deployment, posing significant challenges for the industry.

According to China Chemical Information Consulting, China's polypropylene capacity continued expanding in 2024, adding 5.37 million tons/year to reach a total capacity of 51.36 million tons/year, marking an 11.7% year-on-year increase. Domestic polypropylene supply maintained growth in 2024, with production reaching 37.92 million tons, up 6.6% year-on-year. Imports further decreased to 3.67 million tons, down 10.8% year-on-year, while exports surged significantly to 2.41 million tons, up 83.7% year-on-year. Import dependency dropped to 3.2%. Amid sustained domestic capacity expansion, the average operating rate of polypropylene plants hit a new low, falling to 74%.

From a product mix perspective, the disproportionately high share of low-end products remains a prominent issue: filament-grade polypropylene, the most basic category, still accounted for over 30% of total output in 2024, while ordinary homopolymer injection molding grade also exceeded 10%. These categories, characterized by low technical barriers and concentrated capacity, have already shown significant supply-demand imbalances. Over the past three years, the polypropylene industry has accumulated 2.61 million tons/year of long-term shutdowns.

Statistics indicate that planned new domestic polypropylene capacity remains as high as 26 million tons per year, intensifying the supply-demand contradiction and pushing industry competition into a white-hot phase.

As an integrated internet platform providing benchmark prices, on October 27th, SunSirs PP standard rate was 6773.33 RMB/ton, the first month of the month (6920.00 RMB/ton) ratio, down 2.12%.

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