China propylene glycol production gained by 32.60% year on year in the first half of 2024 with capacity expansion. A new unit with the capacity of 60,000 tonnes/year was put into operation March, and domestic propylene glycol capacity reached 895,000 t/y in H1 2024, up 15.50% year on year, according to OilChem's survey.
China Propylene Glycol Supply in H1 2024 (Unit: '000 t/y, '000 tonnes, percentage points)
|
Item |
Jan-Jun, 2023 |
Jan-Jun, 2024 |
YoY Chg |
|
Capacity |
775.00 |
895.00 |
15.50% |
|
Production |
236.00 |
313.00 |
32.60% |
|
Capacity Utilization Rate |
62.50% |
66.40% |
3.90 |
Source: OilChem
China Propylene Glycol Production and Capacity Utilization Rate
Source: OilChem
According to the latest survey by OilChem, domestic propylene glycol capacity might gain by 677,350 t/y or 75.68% to 1,572,350 t/y in H2 2024 if all of the new capacities are put into production as scheduled. The oversupply will constantly weigh on domestic propylene glycol prices, amid fierce market competition in H2 2024.
China Proposed Propylene Glycol Projects in H2 2024 (Unit: '000 t/y)
|
Region |
Enterprise |
Capacity |
Commissioning Time |
|
Shandong |
Dongying Herui Chemical Technology |
80.00 |
Debugging |
|
Shandong |
41.25 |
Debugging |
|
|
Hunan |
Hunan Zhongchuang Chemical |
68.00 |
Jul 2024 |
|
Anhui |
Tongling Jintai Chemical |
86.00 |
2024 |
|
Shaanxi |
Shaanxi Chuangming Energy |
40.00 |
2024 |
|
Shandong |
Lihuayi Group |
180.00 |
Q4 2024 |
|
Jiangsu |
Shenghong Refining & Chemical (Lianyungang) |
12.00 |
Around Oct 2024 |
|
Shandong |
Wanhua Chemical Group |
80.00 |
Nov 2024 |
|
Fujian |
Fujian Billion Petrochemicals |
80.00 |
Q4 2024 |
|
Shandong |
Heze Jufeng New Energy |
5.00 |
2024 |
|
Shandong |
Shandong Minxiang Chemical Technology |
5.10 |
2024 |
|
Total |
677.35 |
|
|
Source: OilChem
Furthermore, the winter demand peaks in the overseas market might promote China's propylene glycol exports to some extent, relieving the supply pressure brought by domestic capacity expansion.
Written by Ariel Guo, gq@oilchem.net
Edited by Navy Liu, liuchuanjun@mysteel.com
