In the first half of 2019, national PE supply increased by about 14% compared to the same period last year. Domestic production increased by 12% and imports by 17%.

In the second half of 2019, Zhongan United Coal Chemical Co. commenced production in August. Meanwhile, Baofeng Energy Co. plans to start the production of the second phase of its 300,000 tons per year HDPE and LLDPE plant in the second half of 2019.

In addition, PE projects launched by CNOOC, Shell Petrochemicals and Yanjingan Energy last year will increase domestic production by 5% year-on-year. However, this is only part of the capacity release. According to public statistics, four sets of PE units will be put into production in 2019, with a planned capacity of 600,000 tons.In 2020, 11 sets of PE units are planned to be built, with a capacity of 3.375 million tons. In addition, 4 sets of new units are planned to be built in 2021 with a planned capacity of 1.02 million tons. China aims to replace the United States as the main driver of PE capacity expansion.

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