# Polypropylene: Production

How China added 17 Mt in five years

Source page: https://www.materialinsights.org/chemicals/polypropylene/production/

What this tab covers Who makes it and how much: world capacity and output, utilisation, the top producing countries and companies globally and in India, concentration, new capacity coming, and each region's position.

| Measure | Figure | Detail | Source |
|---|---|---|---|
| **World capacity** | about 120-125 Mt/yr (2025, indicative: 96 Mt demand at operating rates below 80%); 10.5 Mt/yr of overbuild in 2022-2025, mostly China |  | indicative (basis: S&P Global via Chemical Week, Sep 2025; Argus, Feb 2026) |
| **World output** | about 96 Mt (2024, demand basis) |  | S&P Global via Chemical Week, Sep 2025 |
| **Capacity utilisation** | global PP operating rate 75% in 2025, down from the mid-80s in 2021; forecast to bottom near 74% in 2027-28 | Southeast Asian PP plants ran at about 64% and are expected to stay below 70% through 2028. China's PP exports reached record volumes (Argus). | Argus, Feb 2026 |
| **Concentration** | top country (China) about 40%; top 3 about 55% (indicative) | Chinese capacity is split between Sinopec, PetroChina, coal-to-olefin producers and many private PDH-PP firms, so company concentration is low; the largest producers each hold a few per cent (indicative). | indicative |
| **New capacity** | about 15 Mt of new PP in a 2027-28 wave, after 24 Mt in the past five years (Argus, Feb 2026) | China expects about 10 Mt of PE and PP in 2027-28; Lotte Chemical Titan added a 250 kt PP plant in Indonesia in 2025; Europe rationalised about 600 kt of PP (Argus). In India, new PP comes with refinery-petrochemical projects and the planned GAIL Usar PDH-PP unit of about 500 kt/yr (propylene tile, status not confirmed). | Argus, Feb 2026; propylene tile; CareEdge 2025 |

#### Top producing countries
 China 40% · added about 17 Mt of PP capacity in five years (Argus) United States 8% · indicative South Korea 5% · indicative Saudi Arabia 5% · SABIC and affiliates (indicative) India 5% · PP capacity set to rise 1.7-1.8x over FY25-FY30 (CareEdge) Japan 2% · indicative indicative share (basis: propylene tile); Argus Feb 2026; indicative; indicative share; CareEdge via Indian Chemical News, Dec 2025

#### Largest producers: global

| Company | Country | Volume | Year | Source |
|---|---|---|---|---|
| **Sinopec** largest PP producer (indicative) | China | not published | 2025 | [Sinopec annual report](http://www.sinopec.com/listco/en/) |
| **LyondellBasell** largest PP licensor (Spheripol, Spherizone) and a top producer (indicative) | Netherlands/US | not published | 2025 | [company disclosures](https://www.lyondellbasell.com) |
| **Borealis / Borouge** Borstar PP; Borouge exports to India (indicative) | Austria/UAE | not published | 2025 | [company disclosures](https://www.borealisgroup.com) |
| **SABIC** Saudi producers offered PP CFR India at $1,280/t in Sep 2026 (Polymerupdate) | Saudi Arabia | not published | 2025 | [SABIC annual report](https://www.sabic.com) |
| **ExxonMobil** not published here | US | not published | 2025 | [company disclosures](https://corporate.exxonmobil.com) |
| **PetroChina** not published here | China | not published | 2025 | [PetroChina annual report](http://www.petrochina.com.cn) |
| **Braskem** largest PP producer in the Americas (indicative) | Brazil | not published | 2025 | [Braskem disclosures](https://www.braskem.com) |

#### Largest producers: India

| Company | Country | Volume | Year | Source |
|---|---|---|---|---|
| **Reliance Industries** largest; raised PP list prices by Rs 4/kg from 5 Sep 2026 (Polymerupdate) | India | not published | 2025 | [Reliance annual report](https://www.ril.com) |
| **Indian Oil Corporation** Panipat and Paradip PP (indicative) | India | not published | 2025 | [IOCL](https://iocl.com) |
| **HPCL-Mittal Energy (HMEL)** Bathinda (indicative) | India | not published | 2025 | [HMEL](https://www.hmel.in) |
| **Nayara Energy** Vadinar refinery-based PP (indicative) | India | not published | 2025 | [Nayara Energy](https://www.nayaraenergy.com) |
| **ONGC Petro additions (OPaL)** Dahej (indicative) | India | not published | 2025 | [OPaL](https://www.opalindia.in) |

India's PP demand is about 6.5-7 Mt a year (indicative) and imports cover roughly one-fifth of PE and PP consumption (CareEdge 2025). More than half of PP imports come from the Middle East (S&P Global, Mar 2026). CareEdge expects PP capacity to rise 1.7-1.8x and demand 1.4x between FY25 and FY30, which could end import dependence.

#### Position by region

| Region | Position |
|---|---|
| **US** | Mid-sized producer; propylene from PDH and refineries; exports less PP than PE. |
| **EU** | Naphtha-based, high cost; about 600 kt of PP rationalised (Argus 2026). FD NWE homopolymer injection rose to €1,200/t in March 2026 (Platts). |
| **India** | Short of PP and dependent on Gulf imports; most exposed to Hormuz. Raffia sacks and BOPP film are large uses. |
| **China** | Overbuilt PDH-PP and coal-to-olefins PP; exporting record volumes, which pressures Southeast Asian and Indian prices in normal times. |
| **Japan** | Small; closures planned with crackers in 2027-30. |
| **Middle East** | Low-cost exporter; with PE, close to 25% of world PP and PE exports (S&P Global 2026). |

## Other sections

- [Summary](https://www.materialinsights.org/chemicals/polypropylene/index.md)
- [Overview](https://www.materialinsights.org/chemicals/polypropylene/overview/index.md)
- [Correlation](https://www.materialinsights.org/chemicals/polypropylene/correlation/index.md)
- [Production route](https://www.materialinsights.org/chemicals/polypropylene/routes/index.md)
- [Feedstocks](https://www.materialinsights.org/chemicals/polypropylene/feedstocks/index.md)
- [Cycles](https://www.materialinsights.org/chemicals/polypropylene/cycles/index.md)
- [Trading](https://www.materialinsights.org/chemicals/polypropylene/trading/index.md)
- [Movement](https://www.materialinsights.org/chemicals/polypropylene/movement/index.md)
- [Regulation](https://www.materialinsights.org/chemicals/polypropylene/regulation/index.md)
- [Characteristics](https://www.materialinsights.org/chemicals/polypropylene/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/chemicals/polypropylene/emissions/index.md)
- [Relationships](https://www.materialinsights.org/chemicals/polypropylene/links/index.md)