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Polypropylene growth in China continues at over 10% in the recent years

Polypropylene growth in China continues at over 10% in the recent years

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Polypropylene consumption in China continues to grow at over 10% in the recent years. Infact, consumption has reached the level of almost 6 million tonnes in 2002. China is the world's second largest consumer of PP, second to USA.

However, the local production of PP in 2002 was only 3.5 million tonnes, subsequently leading to imports of almost 2.5 million tonnes in 2002. China has about 70 PP producers including Daquin Petrochem, Fushun Petrochem, Shanghai Petrochem, Yangzi Petrochem, Yanshen Petrochem and Qilu Petrochem. Most of these producers manufacture homopolymers for raffia and general purpose mouldings. BOPP film, high speed spinning and copolymers are not produced and thus imports continue in these range of products.

The PP consumption breakdown given below indicates that film fiber (raffia/tape) continues to be the major segment. These woven sacks are used in packaging of powder and granule products like fertilizers, cement, salt and chemical products. They are also used in packing of grains, sugar and agriculture feed products. BOPP film is also an important segment. Infact flexible packaging in China still continues to grow more than 12%. The rigid packaging segment also continues to grow at 10%, wherein PP is used as containers or caps and closures. The automobile sector too is a big user of PP mouldings. The consumer durable sector of washing machines etc. still continues to grow well for PP moulded products.

Most of the pundits forecast the growth of PP at more than 8-10% in the next 2-3 years. It would therefore be quite feasible that the demand of PP in China crosses 7.5 million tonnes by 2005.

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2700 tons Husky

2700 tons Husky