China Braces for Noteworthy Increase in Propylene Glycol Production Capacity in 2024

The propylene glycol industry in China is poised for a significant and transformative phase, anticipating substantial growth with a projected annual capacity expansion of 915,350 tonnes in 2024. This remarkable surge of 110% year-on-year is expected to elevate the total capacity to an impressive 1,759,350 tonnes per year. To provide context, the industry experienced a notable 27.11% year-on-year rise in 2023, reaching a capacity of 145,000 tonnes annually.

The first quarter of 2024 emerges as a pivotal period earmarked for the initiation of capacity expansion projects, with an estimated increase of 158,000 tonnes per year in the regions of Shandong and Jiangsu. This initial quarter expansion accounts for 17.26% of the total annual proposed projects. Throughout the year, the commissioning of 14 proposed projects is expected to propel China's propylene glycol output, contributing to a substantial rise of 21.7% in 2024. However, it is anticipated that this expansion may result in a moderate decrease in the average capacity utilization rate.

The surge in domestic production is not the sole focus of the propylene glycol industry in China; there is also a strategic emphasis on increasing exports. This forward-looking move is propelled by abundant domestic supply resulting from the impending capacity expansion. The apparent price advantage enjoyed by Chinese manufacturers is expected to enhance the nation's competitiveness in the international market, fostering the growth of propylene glycol exports.

The propylene glycol sector in China stands at the threshold of a remarkable expansion, characterized by substantial capacity increases and an ensuing surge in production expected in 2024. This growth trajectory is propelled by ongoing and planned capacity expansion projects, particularly in the initial quarter, and is likely to have a profound impact on both the domestic and international markets for propylene glycol. As the industry undergoes this transformative phase, diligent monitoring of the progress of these projects and their implications on production capacity and export dynamics becomes crucial for stakeholders and industry observers alike. The evolving landscape of China's propylene glycol sector offers a fascinating narrative, with implications reaching far beyond its borders.

As the year unfolds, the propylene glycol industry in China presents an evolving story that captivates the attention of industry participants, analysts, and global markets. The intricate dance between domestic expansion, international competitiveness, and shifting market dynamics creates a narrative that transcends regional boundaries, influencing the broader trajectory of the chemical industry. As stakeholders engage in this unfolding saga, the propylene glycol sector in China emerges as a key player in shaping the future of the chemical landscape. The confluence of production expansion, export strategies, and market responsiveness makes this sector a focal point for those navigating the complexities of the global chemical industry.