Key Events in the PP Industry H1 2025: Surging Capacity, Trade Reversals & Policy Impetus – Changes You Must Grasp!

This first half, the PP industry has fully entered "expansion mode": new capacity surged to 3.655 million tons, a year-on-year jump of 58.91%! Domestic total capacity has now exceeded 48.165 million tons/year, hitting a new all-time high.

Looking at the details, major players have taken turns ramping up: Yulong Petrochemical kicked off with 800,000 tons in January; Inner Mongolia Baofeng released two batches totaling 1 million tons in February-March; ExxonMobil (Huizhou) followed with 955,000 tons in April; Yulong added another 400,000 tons in June, and Zhenhai Refining & Chemical supplemented 500,000 tons... New capacities are mainly clustered in the three core regions: East China, South China, and North China.

With so much supply hitting the market at once, the pressure on trade has been maxed out. Traders worry daily about offloading their goods, market sentiment has been "ground into the dirt", and prices can barely lift their heads!