SunSirs: Key Events in China's Propylene Industry Chain in 2025

The propylene industry chain is a vital branch of the chemical sector, encompassing multiple products such as propylene, polypropylene, propylene oxide, acrylic acid, acrylonitrile, and epichlorohydrin. Looking back at 2025, what major events unfolded over the past year?

1. Polypropylene Spinning Grade, Propylene Oxide, and Isobutyraldehyde Hit Historic Lows

According to data from Business Society, by the end of 2025, China's polypropylene spinning grade price had fallen to approximately 6,200 RMB/ton, with the annual average price dropping to around 7,200 RMB/ton—marking an 18-year low. The mainstream price of propylene oxide dropped to around 8,100 RMB/ton by the end of 2025, with the annual price hovering around 7,700 RMB/ton—also the lowest in the past 17 years. Isobutyraldehyde prices fell to approximately 5,700 RMB/ton, with the 2025 annual price dropping to 6,300 RMB/ton, marking the lowest recorded price in the past five years.

2025 marked a challenging year for China's chemical industry operations. Constrained by domestic supply growth and external trade barriers, bulk chemical sales stagnated amid intense domestic competition. Market prices experienced repeated declines, intensifying overall industry-wide competition.

2. Propylene Futures and Options Launch: China's Pricing Influence Gradually Expands

On July 22, 2025, propylene futures and options were listed on the Zhengzhou Commodity Exchange, filling a gap in risk management within China's olefin industry chain and establishing the “Zhengzhou Price.” This development holds significant importance for enhancing China's influence in global propylene pricing.

Propylene futures and options synergize with products like crude oil, methanol, and polypropylene across the industrial chain, providing new tools for price risk discovery and management within the propylene sector.

3. Total Propylene Capacity Surpasses 65 Million Metric Tons in 2025, with Over 8 Million Metric Tons of New Capacity Added That Year

According to incomplete statistics, by the end of 2025, China's new propylene capacity exceeded 8 million metric tons, bringing total capacity to over 65 million metric tons. This included over 2.6 million metric tons of new PDH capacity and over 4 million metric tons of new steam cracker propylene capacity, marking a historic peak in the scale of China's propylene industry.

Notable propylene projects commissioned in 2025 include: Zhongjing Petrochemical's globally largest hydrocarbon integrated base commenced operations on July 27, 2025, in Fuqing, Fujian. with a total investment of RMB30 billion. The project includes annual production capacities of 2.8 million tons of propylene and 3.8 million tons of polypropylene, featuring the world's largest monomer plant. It is supported by three PDH units and four polypropylene units, making it the only enterprise globally with a complete industrial chain from LPG terminals to polypropylene film.

ExxonMobil's Huizhou ethylene project commenced operations on July 15, 2025. Phase I includes a 1.6 million metric tons/year steam cracker and a 950,000 metric tons/year differentiated high-performance polypropylene unit, marking the first major petrochemical project wholly owned by a U.S. company in China.

4. Breakthroughs in China's Propylene Production Technology by 2025

In April 2025, a team from Fuzhou University developed a renewable Pt-based PDH catalyst under chlorine-free conditions, resolving the catalyst regeneration challenge.

Additionally, in March 2025, the Shanghai Advanced Research Institute of the Chinese Academy of Sciences introduced solar-driven propane dehydrogenation technology. This process utilizes solar energy to produce propylene from propane dehydrogenation, significantly reducing energy consumption in the PDH industry. It paves the way for low-energy propylene production in China and future green manufacturing.

5. Large-scale polypropylene plants intensively commissioned in China's polypropylene industry in 2025, with over 5 million tons of new capacity added that year

Polypropylene projects commissioned in 2025 include: CNOOC Ningbo Daqiao Petrochemical's 2×450,000-ton/year polypropylene units completed on May 14, 2025, utilizing Sinopec's third-generation ST loop reactor process; Guangxi Petrochemical's 400,000-ton/year polypropylene unit achieved successful first-time startup on October 16, 2025, filling a regional market gap; ExxonMobil's Huizhou project commissioned two differentiated high-performance polypropylene units totaling 950,000 tons/year, producing premium PP specialty grades.

By the end of 2025, China's total polypropylene production capacity approached 50 million tons, setting a new historical high. New capacity additions in 2025 exceeded 5 million tons, accounting for over 10% of the year's total capacity. While China's polypropylene industry maintained rapid growth over the past few years with sustained expansion, the growth rate has been gradually slowing.

6. Breakthrough Achieved in High-End Polypropylene Technology in China by 2025

On June 20, 2025, Zhong'an United successfully developed PPB-MP17, a medium-melting-point, high-impact polypropylene. This marks the first time Sinopec has produced a high-performance product using domestically developed catalysts via the loop reactor process, overcoming application bottlenecks in the high-performance PP field.

In 2025, Dongming Petrochemical developed ultra-transparent polypropylene resin based on tertiary monomer regulation, innovatively introducing ethylene as a regulator. This significantly enhanced surface gloss, enabling import substitution, and earned the Shandong Chemical and Chemical Engineering Society's Science and Technology Progress Award.

On July 7, 2025, a customized catalyst jointly developed by China Coal Yulin and Dingjide was successfully applied in a Unipol polypropylene unit, breaking import dependency.

In August 2025, Liaoyang Petrochemical achieved the first successful one-time startup of a polypropylene unit using entirely domestically produced primary catalysts, signifying the maturity of domestic catalyst technology.

In July 2025, Sinopec Catalyst (Tianjin) Company's spherical polypropylene catalyst unit commenced operations, primarily producing high-end polypropylene catalysts.

7. By 2025, China's propylene oxide industry surpassed 10 million tons in scale, becoming the world's largest producer.

By the end of 2025, China's propylene oxide industry added over 1.5 million tons of new capacity, bringing total capacity to over 10 million tons. This accounted for approximately 46% of global total capacity, establishing China as the world's largest producer.

New propylene oxide projects in 2025 include: - May 16, 2025: Binhua Chemical's 240,000-ton propylene oxide facility commenced operations. This project employs the isobutane co-oxidation process with an investment of RMB1.4 billion. Lianhong Gelun's 300,000-tonne propylene oxide facility commenced operations in December 2025, integrated with a 1.3 million-tonne MTO unit; Guangxi Petrochemical's 270,000-tonne HPPO unit started production in October 2025; Taixing Yida's 150,000-tonne facility resumed operations after technical upgrades in May 2025.

Key technological breakthroughs in the propylene oxide industry by 2025 include: Tianchen achieving domestic HPPO technology localization, breaking foreign monopolies, and being selected for the Ministry of Industry and Information Technology's first batch of advanced applicable technologies, receiving national recognition; On June 29, 2025, Binhua Group's chlorohydrin-based calcium saponification process passed acceptance, becoming China's first chlorohydrin-based conversion technology validated by expert review; Sinopec Catalyst Co., Ltd. and the Research Institute of Petroleum Processing jointly achieved large-scale production of green, high-efficiency propylene oxide catalysts. Additionally, breakthroughs in the fluidized bed direct oxidation of propylene using hydrogen peroxide (FHPPO) garnered significant industry attention.

9. China's total acrylonitrile production capacity to exceed 5.7 million tons by 2025, becoming the world's largest producer

According to incomplete statistics, China's new acrylonitrile production capacity will surpass 1.6 million tons by 2025, bringing total capacity to over 5.7 million tons. This represents approximately 60% of global capacity, establishing China as the world's largest producer.

New acrylonitrile facilities commissioned in 2025 include: August 12, 2025: Zhenhai Refining & Chemical's 400,000-ton acrylonitrile plant—the world's largest single-unit facility—achieved successful first-time startup. Utilizing 100% domestically developed technology from Sinopec Shanghai Research Institute, it features the world's largest single-series capacity and employs novel catalysts. March 2025: Yulong Petrochemical's 130,000-ton acrylonitrile unit commenced operations; Q3 2025: Jilin Petrochemical's 260,000-ton propylene-based unit began production; End of 2025: Zhejiang Petrochemical and INEOS Tianjin's combined 300,000-ton acrylonitrile units started operations.

Key technical breakthroughs in acrylonitrile plants by 2025 include: July 2025: Second-generation Mo-Bi-Fe-Ce-O catalyst achieves large-scale application at leading enterprises like Sinopec and Hengli Petrochemical, fully replacing imported catalysts. August 2025: Sinopec Shanghai Research Institute's integrated acrylonitrile technology successfully applied in Zhenhai Refining & Chemical's 400,000-ton plant, securing 37 authorized patents.

10. Global EGCP Production Capacity Surpasses 2.4 Million Tons in 2025, Making China the World's Largest Producer

According to incomplete statistics, China added 150,000 tons of EGCP capacity in 2025, bringing total capacity to over 2.4 million tons. This accounts for approximately 60% of global capacity, establishing China as the world's largest producer.

New epichlorohydrin projects in 2025 include: - Fujian Huanyang's 150,000-ton project commences operation on January 10, 2025, adding to its existing 200,000-ton facility for a total capacity exceeding 350,000 tons, making it China's largest epichlorohydrin producer; In December 2025, plans were announced for a 100,000-ton glycerol-based epichlorohydrin project and a 100,000-ton specialty data project.

Technological breakthroughs in the 2025 epichlorohydrin industry include: November 18, 2025: Jiantou (Beihai) signed a 50,000-ton green project agreement. Collaborating with the Dalian Institute of Chemical Physics (Chinese Academy of Sciences) and Shandong Jierui Kaite, the project developed a hydrogen peroxide direct oxidation method that eliminates chlorine gas usage and waste salt generation; May 2025: Wanhua Chemical's surface-modified silicate titanium-silicon molecular sieve catalyst was applied at its production base; March 2025: Binhua Group independently developed an aromatic derivative hydroxy-epichlorohydrin process, breaking foreign technological monopolies.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.