Propylene: Production
How China's PDH boom created a global glut
How China's PDH boom created a global glut 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 188 Mt/yr at end-2025, up from about 151 Mt in 2021 | Mysteel, Nov 2025; world totals differ with how refinery FCC propylene is counted (Argus expected 44 Mt of additions over 2024-2028) | |
| World output | about 135-140 Mt in 2025 (indicative: capacity x about 72-75%) | derived | |
| Capacity utilisation | China PDH 69.5% in July-November 2025 and 71.7% in October 2025 | Global steam cracker utilisation was 79% in 2023 (Argus). PDH margins collapsed after 2024 and the US tariff episode of April 2025. | S&P Global Dec 2025 (JLC data); S&P Platts H1 2026; Argus May 2024 |
| Concentration | China about 40% of capacity, top 3 about 60% (indicative) | Ownership is fragmented, with many Chinese private PDH players (Oriental Energy, Wanhua, Jinneng, SP Chemical) alongside Sinopec, PetroChina, ExxonMobil, SABIC and LyondellBasell. | indicative |
| New capacity | about 44 Mt of propylene additions in 2024-2028, about 75% in China (32.9 Mt) | PDH: 2.32 Mt/yr of new PDH scheduled for 2026 (ChemOrbis); SP Chemical 0.8 Mt, Sinopec Zhenhai 0.6 Mt, Yuanjin 0.75 Mt in 2025 (S&P Global). Crackers: BASF Zhanjiang 0.4 Mt, PetroChina Dushanzi 0.45 Mt, Huajin Aramco 0.7 Mt propylene (2026). India expects about 2.5 Mt more by FY29 (KPMG 2025, implied). | Argus May 2024; ChemOrbis Dec 2025; S&P Global Dec 2025; KPMG 2025 |
Top producing countries
China 40% · about 75 Mt/yr (indicative, 2025) United States 13% · about 24 Mt/yr (indicative) South Korea 6% · about 11 Mt/yr (indicative) Saudi Arabia 5% · about 9-10 Mt/yr (indicative) India 4% · about 7-8 Mt/yr (indicative, crackers plus refinery FCC) Japan 3% · about 5-6 Mt/yr (indicative) indicative (basis: Argus 2024 China additions of 32.9 Mt in five years); indicativeLargest producers: global
| Company | Country | Volume | Year | Source |
|---|---|---|---|---|
| Sinopec largest producer; Zhenhai 600 kt/yr PDH new in 2025 (S&P Global) | China | not published | 2025 | Sinopec annual report |
| Oriental Energy (Donghua Energy) largest PDH operator in China (indicative) | China | not published | 2025 | company disclosures |
| Enterprise Products Partners operating rates expected above 90% | US | 3 Mt/yr PDH capacity (two 1.5 Mt units) | 2025 | S&P Global Platts H1 2026 |
| ExxonMobil not published | US | not published | 2025 | company disclosures |
| SABIC not published | Saudi Arabia | not published | 2025 | SABIC annual report |
| SP Chemical new plant | China | 0.8 Mt/yr new PDH | 2025 | S&P Global Dec 2025 |
| Wanhua Chemical PDH plus Yantai cracker expanding from 1.0 to 1.2 Mt/yr ethylene | China | not published | 2025 | S&P Global Dec 2025 |
Largest producers: India
| Company | Country | Volume | Year | Source |
|---|---|---|---|---|
| Reliance Industries largest; Jamnagar FCC and crackers (not published separately) | India | not published | 2025 | Reliance annual report |
| Indian Oil Corporation Panipat cracker and Paradip FCC; Paradip PP | India | not published | 2025 | IOCL annual report |
| HPCL-Mittal Energy (HMEL) Bathinda; not published | India | not published | 2025 | HMEL |
| Bharat Petroleum (BPCL) Kochi propylene derivatives project; not published | India | not published | 2025 | BPCL |
| GAIL Usar PDH-PP project (about 500 kt/yr PP) planned; status not confirmed | India | not published | 2025-2026 | GAIL |
India has about 7-8 Mt/yr of propylene capacity from crackers and refinery FCC units (indicative); KPMG (2025) projects 10.0 Mt/yr by FY29. India is short of PP: imports supply about one-fifth of PE and PP demand and PP capacity is set to rise 1.7-1.8x over FY25-FY30 (CareEdge 2025).
Position by region
| Region | Position |
|---|---|
| US | Propane-rich; PDH margins fell to about $122-254/t in late 2025, and US polymer-grade propylene hit 23.75 c/lb (about $524/t) on 19 Nov 2025, a five-year low (S&P Platts). |
| EU | Cracker-based and shrinking; polymer-grade propylene fell from €781.50/t in July to €622.50/t on 23 Dec 2025, with naphtha cracker margins at -€52/t (S&P Platts). PP imports rose 9% in Jan-Sep 2025. |
| India | Short in PP and derivatives; FCC propylene from large refineries is the cheapest local source. |
| China | PDH overbuild; plants depend on imported propane (26 Mt Jan-Nov 2025) and shifted away from US supply after tariffs of up to 125% in April 2025 (S&P Global). |
| Japan | Naphtha-based, consolidating; exports to China under pressure. |
| Middle East | Major exporter of propane to China (45.9% share in Jul-Nov 2025) and PP; 2026 Hormuz disruption tightened Asian propylene. |