From 2021 to 2025, China will add 25 million tons of ethylene capacity

Through the collection of information from public data, the ethylene production capacity planned to be built in China from 2021 to 2025 is summarized.
It is expected that the new domestic ethylene production capacity will exceed 25 million tons per year in the past five years
.
On the one hand, a number of ethylene projects have been put into operation intensively, and the risk of excess ethylene production capacity in China will be further exacerbated, and the profits of the ethylene industry will be further compressed.
The key to profitability; on the other hand, the proportion of production capacity of private enterprises will further expand, and market competition will become more intense
.

Table 2021-2025 Domestic new ethylene production capacity tons/year

PE: Homogeneous competition is fierce, and it is developing towards differentiation and high-end

As the most important downstream consumption field of ethylene, PE accounts for 63.
5% of the total consumption, and it is developing towards high-end
.

Figure my country's ethylene downstream consumption structure

The main products of PE are linear low density polyethylene (LLDPE), low density polyethylene (LDPE) and high density polyethylene (HDPE)
.
PE has the advantages of low cost and good chemical properties, and is widely used in agriculture, industry and daily life
.
From 2016 to 2021, domestic PE production capacity will continue to expand, with an average growth rate of 12%, and the total production capacity in 2021 will be 27.
73 million tons per year
.

At present, China's PE products are mainly low-end general-purpose materials, and high-end PE products are heavily dependent on imports.
There are obvious structural problems, that is, the excess of low-end products and the lack of high-end products
.
In the next few years, with the continuous expansion of domestic PE production capacity, the homogenization competition will become more intense, and there is huge room for localization of high-end products
.
Taking metallocene polyethylene (mPE) products as an example, the current domestic market demand is about 1 million tons per year, while China's output in 2020 is only about 110,000 tons.
The huge supply gap has stimulated a large number of imported mPE products to enter the Chinese market.

.
Therefore, PE is developing in the direction of high-end and differentiation, which has important practical significance
.