# Propylene: Production

How China's PDH boom created a global glut

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

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); indicative

#### Largest 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](http://www.sinopec.com/listco/en/) |
| **Oriental Energy (Donghua Energy)** largest PDH operator in China (indicative) | China | not published | 2025 | [company disclosures](http://www.oriental-energy.com.cn) |
| **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](https://www.enterpriseproducts.com) |
| **ExxonMobil** not published | US | not published | 2025 | [company disclosures](https://corporate.exxonmobil.com) |
| **SABIC** not published | Saudi Arabia | not published | 2025 | [SABIC annual report](https://www.sabic.com) |
| **SP Chemical** new plant | China | 0.8 Mt/yr new PDH | 2025 | [S&P Global Dec 2025](https://www.spchemical.com) |
| **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](https://www.whchem.com) |

#### 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](https://www.ril.com) |
| **Indian Oil Corporation** Panipat cracker and Paradip FCC; Paradip PP | India | not published | 2025 | [IOCL annual report](https://iocl.com) |
| **HPCL-Mittal Energy (HMEL)** Bathinda; not published | India | not published | 2025 | [HMEL](https://www.hmel.in) |
| **Bharat Petroleum (BPCL)** Kochi propylene derivatives project; not published | India | not published | 2025 | [BPCL](https://www.bharatpetroleum.in) |
| **GAIL** Usar PDH-PP project (about 500 kt/yr PP) planned; status not confirmed | India | not published | 2025-2026 | [GAIL](https://gailonline.com) |

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. |

## Other sections

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