China to drive global propylene capacity additions through 2030

China is poised to significantly expand its propylene production capacity by 2030, backed by strong demand for propylene derivatives such as polypropylene and propylene oxide in the building, packaging, and construction industries. Accounting for over 40% of the expected capacity additions worldwide by 2030, China is positioning itself as the dominant player in the global propylene market, according to GlobalData, a leading data and analytics company.

GlobalData’s latest report, Propylene Industry Capacity and Capital Expenditure Forecasts with Details of All Active and Planned Plants to 2030, shows that China is likely to witness total propylene capacity additions of 22.27 million tonnes per annum (mtpa) during 2025-30 from 23 planned and eight announced projects.

Nivedita Roy, Oil and Gas Analyst at GlobalData, comments: “Propylene is a highly versatile petrochemical with a wide range of industrial and commercial uses. It is also a building block for several important chemicals, such as acrylonitrile and propylene oxide, and polypropylene – a widely used plastic for packaging, automotive parts, and consumer goods. Driven by the growth of these industries that heavily rely on propylene-derived products, the Chinese market is experiencing a substantial increase in propylene capacity additions.”

In China, the highest capacity addition is expected from the Shandong Yulong Petrochemical Longkou Propylene Plant 2, which has a nameplate capacity of 2.0mtpa. The plant is still in the feasibility stage and is anticipated to commence production of propylene in 2030. Shandong Yulong Petrochemical Ltd is the designated operator of this plant.

Fujian Yongrong New Materials Company Putian Propylene Plant 2 follows next in terms of the capacity additions in the country, with 1.10mtpa likely to be added by 2029. It is also in the feasibility stage, with Fujian Eversun New Material Co Ltd being the proposed operator.

The third-highest propylene capacity addition in the country is expected from the SABIC Fujian Petrochemical Zhangzhou Propylene Plant with a capacity of 1.02mtpa. SABIC Fujian Petrochemical Co Ltd is the designated operator of this plant, which is currently under construction and is likely to start operations in 2026.