In 2024, the propylene oxide (PO) industry underwent significant changes, as the supply continued to increase and the industry landscape shifted from supply-demand balance to oversupply.
The continuous deployment of new production capacity has led to a sustained increase in supply, mainly concentrated in the direct oxidation process (HPPO) and a small amount of co oxidation process (CHP).
This supply expansion not only increases the self-sufficiency rate of domestic production, but also intensifies price competition in the domestic market, resulting in a trend of weak and low market prices.
In this context, this article provides a detailed overview of 16 important news events in the epoxy propane industry in 2024 to showcase the industry’s development trajectory.
1、 Capacity expansion and production
1. Jiangsu Ruiheng’s 400000 ton HPPO plant successfully started operation
On January 2, 2024, Jiangsu Ruiheng’s 400000 ton HPPO plant located in Lianyungang entered the trial production stage and was successfully driven in one attempt.
The device adopts Yida technology, which has the advantages of green production technology and integrated development, and will enhance the company’s competitiveness in the field of chemical new materials.
2. Wanhua Yantai 400000 ton POCHP plant successfully started operation
On March 31, 2024, the 400000 ton POCHP unit of Wanhua Chemical Yantai Industrial Park was officially put into operation and successfully put into operation.
The device adopts the POCHP process independently developed by Wanhua, which will further support the development of its polyether industry and polyurethane industry chain.
3. Lianhong Gerun 300000 ton epoxy propane plant officially starts construction
In April 2024, Lianhong Gerun started construction of an epoxy propane plant with an annual output of 300000 tons in Tengzhou, using CHP co oxidation method.
This project is part of the integrated project of Lianhong Gerun New Energy Materials and Biodegradable Materials.
4. Lihua Yiweiyuan 300000 tons/year HPPO plant put into operation
On September 23, 2024, Weiyuan Corporation’s 300000 tons/year HPPO plant successfully produced qualified products.
The project uses the products produced by the company’s propane dehydrogenation project as the main raw material and adopts the direct oxidation process with hydrogen peroxide.
5. Maoming Petrochemical’s 300000 tons/year epoxy propane plant starts operation
On September 26, 2024, the 300000 tons/year epoxy propane unit and 240000 tons/year hydrogen peroxide unit of the upgrading and renovation project of Maoming Petrochemical officially started construction, using Sinopec’s own technology.
2、 Large scale project publicity and environmental impact assessment
1. Announcement and Environmental Impact Assessment Approval of Shaanxi Yuneng 100000 ton Epoxy Propane Project
On April 26, 2024, Shaanxi Yuneng Fine Chemical Materials Co., Ltd. released an environmental impact assessment report for its 1 million tons/year high-end chemical new material project, including a 100000 tons/year epoxy propane plant.
On July 3, 2024, the project received environmental impact assessment approval from the Shaanxi Provincial Department of Ecology and Environment.
2. Shandong Ruilin 1 million tons/year PO/TBA/MTBE co production project announced
On February 28, 2024, the environmental impact assessment of the 1 million tons/year PO/TBA/MTBE co production chemical project of Shandong Ruilin Polymer Materials Co., Ltd. was publicly announced for the first time.
3. Announcement and Approval of Environmental Impact Assessment for Dongming Petrochemical’s 200000 ton Epoxy Propane Project
On May 23, 2024, the olefin new material technology demonstration project of Dongming Shenghai Chemical New Materials Co., Ltd. was publicly announced for environmental impact assessment, including a 200000 ton/year epoxy propane plant.
On December 24, 2024, the project received environmental impact assessment approval from the Ecological Environment Bureau of Heze City.
3、 Technology and International Cooperation
1. KBR signs exclusive POC technology licensing agreement with Sumitomo Chemical
On May 22, 2024, KBR and Sumitomo Chemical announced the signing of an agreement, making KBR the exclusive licensing partner for Sumitomo Chemical’s most advanced isopropylbenzene based epoxypropane (POC) technology.
2. Shanghai Institute and others have completed the development of 150000 tons/year CHP based epoxy propane technology
On December 2, 2024, the development and industrial application of a complete set of 150000 tons/year CHP based epoxypropane technology jointly completed by Shanghai Institute, Tianjin Petrochemical, etc. passed the appraisal, and the overall technology has reached the international leading level.
4、 Other important developments
1. Jiangsu Hongwei’s 20/450000 ton PO/SM plant has been successfully put into operation
In October 2024, Jiangsu Hongwei Chemical Co., Ltd.’s 200000 tons/year epoxy propane co production 450000 tons/year styrene unit was successfully put into operation and operated smoothly.
2. Fujian Gulei Petrochemical cancels hydrogen peroxide and epichlorohydrin units
On October 30, 2024, the Department of Industry and Information Technology of Fujian Province approved the cancellation of production facilities such as hydrogen peroxide and epoxy propane by Fujian Gulei Petrochemical Co., Ltd.
3. Dow Chemical plans to shut down its epoxy propane unit in Texas
In October 2024, Dow announced plans to shut down its propylene oxide plant in Freeport, Texas, USA by 2025 as part of the global rationalization of polyol production capacity.
4. The 300000 tons/year epoxy propane project of Guangxi chlor alkali industry has entered the comprehensive construction stage
In November 2024, the Guangxi Chlor Alkali Hydrogen Peroxide Epoxy Propane and Polyether Polyol Integration Project entered the comprehensive construction phase, with an expected trial run in 2026.
5. Northern Huajin’s annual production of 300000 tons of epoxy propane project has been authorized by Solvay Technology
On November 5, 2024, Solvay reached an agreement with Northern Huajin to license its advanced hydrogen peroxide technology to Northern Huajin for the annual production of 300000 tons of epichlorohydrin project.
6. Taixing Yida epoxy propane plant enters trial production stage
On November 25, 2024, Taixing Yida officially put into trial production after technical transformation of the existing epoxy propane unit.
In summary, the epoxy propane industry has achieved significant results in capacity expansion, project disclosure and environmental impact assessment, technology and international cooperation, and other important developments in 2024.
However, the problems of oversupply and intensified market competition cannot be ignored.
In the future, the industry will need to focus on technological innovation, market diversification, and environmental sustainability to address market challenges and seek new growth points.
Post time: Jan-26-2025