China Drying Network News will be another peak of polypropylene capacity expansion in 2012. On the 6th, the relevant research report said that the domestic production capacity in 2012 is expected to reach 12.72 million tons, and the annual growth capacity will exceed 2 million tons. With the commissioning of 300,000 tons of Shenhua, 500,000 tons of Ning coal, and 500,000 tons of coal-made olefins from Datang, the coal-to-olefins, which are rising stars, are expected to break the industry structure of “two points in the world†of China PetroChina and Sinopec's oil-to-olefins production. The rapid growth in production capacity will inevitably lead to an increase in the contradiction between supply and demand. As coal-based olefins are mainly concentrated in the general-purpose materials industry, the industry's future competition will become even more intense. Traditional oil-based olefins will shift its focus to the development and production of specialty materials. However, polypropylene expansion is good news for the industry. Energy expansion is not only the production of new devices, but also the elimination of backward production capacity, and the transformation and structural adjustment of the petrochemical industry. This is the general trend of China's economic development.
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