New Ethylene Production Capacity Reaches Nearly 10 Million Tons in China by 2025
2025-2-25
By 2025, China¡äs newly added ethylene production capacity will reach nearly 10 million tons per year, with a total capacity of approximately 62 million tons per year. The total ethylene production in 2025 is expected to reach 53.3 million tons, an increase of 11.9% compared to the previous year. Based on the current production capacity of Tianjin Nangang and Baofeng among others started by the end of 2024, the pressure of excess ethylene supply in 2025 will hit a record high in history. Under the impact of massive new supply pressure, the operating rates of domestic ethylene plants will further decline.
In recent years, with emerging downstream consumption in the ethylene industry popping up, products such as POE (polyethylene octene elastomer) still have strong growth potential in the future. With the continuous implementation of the dual carbon target and the rapid development of the domestic photovoltaic field, POE, as an important material for photovoltaic film, has gradually picked up in demand. In 2023, China¡äs POE consumption was 780,000 tons, almost entirely dependent on imports. In recent years, with the breakthrough of domestic technology, the construction process of POE production capacity in China has been accelerating. Currently, Wanhua Chemical¡äs 200,000 tons/year POE plant has been officially put into operation. In 2025, projects such as 50,000 tons/year of Yangzi Petrochemical, 200,000 tons/year of Liaoning Dingjide, and 300,000 tons/year of Shengjing New Materials will also gradually reach production. By then, domestic POE production capacity will increase to around 900,000 tons/year, and consumption is expected to rise to 950,000 tons with the support of increased demand for photovoltaic film and automotive toughening modification. In the future, with the gradual increase of planned production capacity, POE is expected to gradually occupy a place in downstream consumption of ethylene.
In recent years, with emerging downstream consumption in the ethylene industry popping up, products such as POE (polyethylene octene elastomer) still have strong growth potential in the future. With the continuous implementation of the dual carbon target and the rapid development of the domestic photovoltaic field, POE, as an important material for photovoltaic film, has gradually picked up in demand. In 2023, China¡äs POE consumption was 780,000 tons, almost entirely dependent on imports. In recent years, with the breakthrough of domestic technology, the construction process of POE production capacity in China has been accelerating. Currently, Wanhua Chemical¡äs 200,000 tons/year POE plant has been officially put into operation. In 2025, projects such as 50,000 tons/year of Yangzi Petrochemical, 200,000 tons/year of Liaoning Dingjide, and 300,000 tons/year of Shengjing New Materials will also gradually reach production. By then, domestic POE production capacity will increase to around 900,000 tons/year, and consumption is expected to rise to 950,000 tons with the support of increased demand for photovoltaic film and automotive toughening modification. In the future, with the gradual increase of planned production capacity, POE is expected to gradually occupy a place in downstream consumption of ethylene.