In China, new polyolefin production facilities continue to start up and the production volume is increasing sharply.

　Polyethylene (PE) production was 4,936,200 mt in the January-March period and 4,697,000 mt in the April-June period. Total PE production increased by 877,800 mt compared to the first half of 2019 (January to June). However, in the first half of 2020, many facilities halted operations due to the impact of COVID-19, so the growth in production volume was below the previous year.

　By products, production volume of low-density polyethylene (LDPE) was about 2.30-2.88 mil mt per year, the same level as the previous year. Meanwhile, supplies for high-density polyethylene (HDPE) and linear low-density polyethylene (LLDPE) were increasing as many new facilities were launched. In 2019, LLDPE production was 7,358,600 mt, and HDPE production was 7,679,700 mt, up 16.27% and 13.49% from 2018 respectively. In addition, HDPE and LLDPE facilities accounted for the majority of PE facilities planned in 2020, so the production volume is expected to increase further in the future.

　The production of polypropylene (PP) was 6,001,000 mt in the January-March period and 6,115,100 mt in the April-June period. Production in the first half of 2020 increased by 1,296,500 mt from the same period of the previous year. The production volume is expected to increase further due to the launch of new facilities in the future. Amid the increase in domestic production, China's dependence on imported goods is decreasing.

　Domestic PP production in 2019 was 22,280,100 mt. The average growth rate between 2010 and 2019 was 10.76%. However, in 2019, many facilities were shut down due to environmental protection issues, and the rate of increase in production was lower than in previous years.