Asian nations are set to dominate global polyolefins capacity additions by 2030

Powerhouse countries in Asia are on course to drive global polyolefins capacity additions by the end of the decade. Figures from data and analytics company GlobalData suggest nations in that region as occupying a share of 57% as demand from various sectors is expected to result in capacity expansions.

Encouraging numbers

In its latest report, Polyolefins Market Analysis and Forecast by Products, Capacity Additions, Top Countries and Active and Upcoming Projects to 2030, GlobalData reveals the total polyolefins capacity of new-build and expansion projects in Asia is expected to be 78.4 million tonnes per annum (mtpa) by 2030.

Bhargavi Gandham, GlobalData Oil and Gas Analyst, said expanding populations in countries such as India and China, higher incomes, and the rising consumption of consumer goods, were expected to drive capacity expansions in Asia. “Growing demand from the packaging, automotive, and electronics industries will drive capacity additions in the region,” he commented.

Polyolefins prospects

When comparing the Asian countries, China is expected to see major polyolefins capacity additions, the report revealed. It said this can be attributed to increasing disposable incomes and the growth of packaging in various industries, such as convenience foods, e-commerce, and retail, among others.

China is seeking to boost its supply to meet the growing domestic demand for polyolefins, and to decrease its reliance on imports.

Rising stars of the sector

The report identified North Huajin Refining and Petrochemical Liaoning Polypropylene Plant, Jinzhou Petrochemical Company Jinzhou Polypropylene Plant 3, and Fujian Eversun New Material Putian Polypropylene Plant among some of the major polyolefins projects with capacities of 1.0 mtpa, 0.9 mtpa, and 0.8 mtpa, respectively.

These three plants are expected to become operational by 2030. “India and Indonesia are the other two leading countries in Asia in terms of polyolefins capacity additions,” Bhargavi concluded from the findings. “India will contribute a capacity addition of 26.9 mtpa from 48 projects, while Indonesia will add a capacity of 7.8 mtpa from 19 projects.”

Current positioning

The primary contributors to the polyolefins market are polyethylene and polypropylene, of which polyethylene stands as the major volume contributor within the polyolefins market.

As it stands, alongside China and India, other key countries in the polyolefins market are the US, South Korea, and Saudi Arabia.

However, the report said several challenges such as environmental regulations, geopolitical tensions affecting the supply chain, and rising demand for plastic alternatives could affect polyolefins supply globally.