New PP Capacities Set to Come On-line in China, India

Players in Asian markets are bracing for the upcoming start-up of several new capacities, primarily in China and India, which will add just under 2 million tons/year to the region's cumulative PP production capacity, as per the pricing service of ChemOrbis. Regional supply concerns have eased over the past few weeks as several existing plants are resuming production following shutdowns and the impending start ups of new plants should intensify this adjustment in the region's supply and demand balance over the next few months.

China is set to add a cumulative total of 900,000 tons/year of new PP capacity by July of this year, as per ChemOrbis. Datang International Power Generation is already said to be conducting test runs at a new methanol-to-olefins plant which will be able to produce 460,000 tons/year of PP. Fushun Petrochemical is looking to start up a new 300,000 tons/year PP plant in Liaoning this June after the plant missed its original planned start up date. In addition, Sinopec Luoyang is planning to start up its 140,000 tons/year PP plant in July of this year.

India is also set to add nearly 900,000 tons/year of new PP capacities this year, with additional planned new capacities set to come on-line in 2013. HPCL-Mittal Energy was planning to start up a 440,000 tons/year PP plant in March of this year. In addition, Mangalore Refining and Petrochemical is hoping to achieve commercial production at its new 440,000 tons/year PP plant by October 2012.

In addition to new capacities from China and India, another 700,000 tons/year of new PP capacity is set to come on-line in Russia and South Korea. South Korea's Honam Petrochemical was planning to start up a new 200,000 tons/year PP plant in April while Russia's Sibur is planning to start up a new 500,000 tons/year PP plant in Tobolsk, Siberia later this year. Sibur hopes to initiate test runs at the new Tobolsk plant by the first half of 2013.