In China, about 3.1 mil tons of polypropylene (PP) capacity was newly added by October 2020. Further, some new facilities are scheduled to start operations by December 2020. As a result, the production capacity of PP in China is expected to reach 29.71 mil tons this year. In addition, 19.75 mil tons of PP facilities are expected to start operation from 2021 to 2025.

PP production capacity is increasing in China, but there are no perceptions of surplus PP supply. Demand for traditional films and yarn is expected to remain firm, and demand for medical use is increasing due to the spread of COVID-19 infections. Further, exports of final products such as home appliances are increasing, and strong automobile sales are also supporting demand. Under these circumstances, inventories remain at a lower level than previous years.