New PE capacities to push up market supply in Q2 2025_热点资讯_HOME

The planned newly-added polyethylene (PE) capacities will not be released as scheduled in the first quarter, and the increase in supply will be an irresistible trend in the second quarter under the commissioning peak.

China PE Newly-added Capacities until Q3 2025 (Unit: kt/y)

Enterprise	Unit Type	Capacity	On-stream Time
ExxonMobil (Huizhou) Chemical	1#LLDPE	730	Mar 2025
Inner Mongolia Baofeng Coal Based New Material	3#FDPE	550	Mar 2025
Shandong Xinshidai High Polymer Materials	LLDPE	250	Mar 2025
Shandong Xinshidai High Polymer Materials	HDPE	450	Apr 2025
ExxonMobil (Huizhou) Chemical	2#LLDPE	500	Jun 2025
ExxonMobil (Huizhou) Chemical	LDPE	500	Jun 2025
Shandong Yulong Petrochemical	2#HDPE	450	Jun 2025
PetroChina Jilin Petrochemical Transformation and Upgrading Project	HDPE	400	Jul 2025

Source: OilChem

China's PE capacity is set to expand rapidly in 2025, and the newly added capacities will intensively come on stream in the first half of the year.

From the perspective of capacity, all of them exceed 250,000 tonnes/year, a total of 3.83 million t/y of new PE capacities will be put into operation in Q2 2025, and the steady production of new units in the second quarter will inevitably largely raise China's PE supply pressure.

With regards to unit maintenance, it is expected that fewer maintenance will bring less support on PE supply in Q2 2025, and the overall PE supply will show an increasing trend.

China PE Downstream Operating Rate

Source: OilChem

According to OilChem, the operating rates of PE downstream industries will remain at 10%-60%, except for the low operating rate of various industries during the Chinese New Year holiday in the first quarter, the year-on-year change in operating rate of downstream industries is not significant during other time periods.

PE downstream industries have relatively obvious peak and off seasons, and the entire second quarter is in a relatively slack season. Under such circumstances, the downstream demand could not effectively favor the PE market in Q2 2025.

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