Global polypropylene demand to rise 5% pa up to 2020

14-Jan-16

Global demand for polypropylene is expected to increase at an average annual growth rate of about 5% pa up to 2020, led mainly by extrusion applications, according to a report released Wednesday for the GPCA Plasticon 2016, as reported by Platts. Extrusion applications accounts for about 60% of global PP consumption, followed by molding applications (34%), out of which injection molding grade was the single largest application. Other sources did not have a clear idea on the actual percentage increase, but said it usually follows a country's GDP. "[I] estimate Middle East demand to be around 3 million-4 million mt/year and globally to be around 60 million mt/year," a distributor in Dubai said. According to the report, PP production capacities in the Gulf Cooperation Council grew 11.7% last year and accounted for around 7.4 mil mt or 10% of global capacities. This year's figures are not yet available. Capacity additions are projected to be fastest in India, China and Africa in the next five years, with almost half in China. According to Platts, some of the new capacities include 300,000 mt/year Shenhua coal-based PP in Yulin and Sinopec's Zhongtian Hechuang 700,000 mt/year coal-based PP unit in Ordos in the second half of 2016. Demand is not expected to catch up with supply additions by 2017, turning China into a net exporter, as there would be an increase of coal-based PP capacities slated to come online during these two years, sources said.