BAKU, Azerbaijan, November 13. Asia is anticipated to spearhead the global propylene industry's capacity expansions, claiming a significant 67 percent share by 2030, Trend reports referring to projections by GlobalData.
This surge is attributed to upcoming new-build and expansion projects between 2023 and 2030, totaling a substantial 44.72 million tonnes per annum (mtpa) of propylene capacity in the region. The escalating demand for propylene, particularly in the burgeoning automotive and packaging sectors, is identified as the primary driver behind this industry growth in Asia.
"The region is set to witness a capacity addition of 44.40 mtpa through 68 planned and announced projects. Additionally, expansions of existing propylene projects will contribute 0.32 mtpa through five planned projects,” says the company.
China emerges as a pivotal player in Asia's propylene capacity additions, primarily propelled by the Shandong Yulong Petrochemical Longkou Propylene Plant 1 project, expected to commence production in 2024, boasting a capacity of 2.30 mtpa. Following closely, India is positioned for substantial growth, with the Haldia Petrochemicals Kakinada Propylene Plant contributing 1.61 mtpa and slated to go online in 2028.
According to The Business Research Company, the global propylene market is anticipated to grow from $104.04 billion in 2022 to $107.4 billion in 2023, marking a compound annual growth rate (CAGR) of 3.2%. The market size is projected to further expand to $121.74 billion in 2027 at a CAGR of 3.2%.
The propylene market is expected to benefit from the growth in the automobile industry during the forecast period, fueled by the large-scale production of automobiles. Polypropylene, a polymer produced from the propylene monomer, plays a vital role in the manufacturing of various automobile components. The International Energy Agency predicts a continual rise in car sales, reaching 73 million in 2020, with an upward trend expected in the future. This surge in the automotive industry is poised to boost the demand for propylene.
Major players in the propylene market include AGC Chemicals, Archer Daniels Midland Company, Asahi Kasei Corporation, BASF SE, Chevron Phillips Chemical Company, China National Petroleum Corp. (CNPC), China Petrochemical Corporation, Dangote Industries Ltd., Eni SpA, and Enterprise Products Partners L.P. The industry is witnessing significant contributions from these key players, shaping the landscape of the global propylene market.
Follow the author on X: @Lyaman_Zeyn
