Production to ramp up starting in August! List of PE and PP projects coming online in the second half of 2026 released

In 2026, the domestic polyolefin market will exhibit a distinct "low in the first half, high in the second half" capacity commissioning rhythm. New capacity additions are limited in the first half of the year, while multiple new and expanded polyethylene and polypropylene plants are set to come online intensively in the second half, leading to a significant expansion in industry supply growth and continuously rising expectations of a supply-demand surplus. The following section outlines the projects scheduled for commissioning in the second half and the changes in industry fundamentals for the two major varieties, PE and PP.

I. Polyethylene (PE): 6.29 million tons expected to be added in H2, facing significant pressure from the off-season demand overlap with concentrated commissioning

In the second half of 2026, the total scale of new domestic PE commissioning will reach 6.29 million tons, with commissioning concentrated in August, the fourth quarter, and the end of December. Among them, Tarim Petrochemical Phase II entered the feed trial operation stage on June 15 and is scheduled for official commissioning at the end of August; the two PE units at Sinopec-Sabic Gulei have simultaneously locked in an end-of-August commissioning window.

At the industry level, the second half of the year is the traditional off-season for plastics demand. Operating rates in terminal packaging, injection molding, and film industries are weakening, while a large amount of new upstream capacity is being released intensively. The market will face direct pressure from a phase of supply surplus.

List of PE Projects Scheduled for Commissioning in H2

1. Sinopec-Sabic Gulei (Zhangzhou, Fujian)

Supporting 400,000 tons/year HDPE and 600,000 tons/year full-density PE units, scheduled for commissioning at the end of August 2026

2. Tarim Petrochemical Phase II (Dushanzi, Xinjiang)

Supporting 900,000 tons/year full-density PE and 300,000 tons/year LDPE/EVA units, feed trial run on June 15, official commissioning on August 30

3. Shandong New Era (Zibo, Shandong)

Supporting 250,000 tons/year LLDPE and 450,000 tons/year HDPE units, scheduled for commissioning in August 2026

4. China Coal Yulin Phase II (Yulin, Shaanxi)

Supporting 300,000 tons/year HDPE and 250,000 tons/year LDPE/EVA units, scheduled for commissioning in Q4 2026

5. Zhejiang Petrochemical (Zhoushan, Zhejiang)

Supporting 400,000 tons/year LDPE and 100,000 tons/year LDPE/EVA units, scheduled for commissioning in Q4 2026

6. Yulong Petrochemical (Yantai, Shandong)

Supporting 200,000 tons/year LDPE/EVA units, scheduled for commissioning in Q4 2026

7. Huajin Aramco (Panjin, Liaoning)

Supporting two HDPE units (totaling 500,000 tons/year) and 450,000 tons/year full-density PE units, scheduled for commissioning at the end of December 2026

8. Inner Mongolia Rongxin Chemical (Ordos, Inner Mongolia)

Supporting a 400,000 tons/year HDPE unit, scheduled for commissioning at the end of December 2026

9. Fushun Petrochemical (Fushun, Liaoning)

Supporting a 200,000 tons/year full-density PE expansion unit, scheduled for commissioning at the end of December 2026

10. Lanhai New Materials (Tongzhou Bay, Jiangsu)

Supporting a 200,000 tons/year full-density PE unit, scheduled for commissioning in December 2026

11. Baofeng Energy Phase IV (Ningdong, Ningxia)

Supporting a 250,000 tons/year full-density PE unit, scheduled for commissioning in December 2026

12. Puxijing (Shanghai Chemical Industry Park)

Supporting a 140,000 tons/year UHMWPE unit, scheduled for commissioning in Q4 2026

II. Polypropylene (PP): 4.6 million tons added in H2, commissioning of multiple units delayed

In the second half of 2026, the total domestic PP production capacity expected to come online is 4.6 million tons, with a wide span in project commissioning rhythm. The commissioning progress of some units is behind expectations; the Dongming Shenghai Chemical PP unit, originally planned for June, has been postponed to the fourth quarter; the Sinopec-Sabic Gulei ethylene project entered the feed trial run sprint on June 18, and its PP unit is expected to commission in November. As crude oil and propane feedstock supplies stabilize, the operating load of existing units is expected to recover. Coupled with the concentrated release of new capacity, the increase in PP market supply will rise in tandem.

List of PP Projects Scheduled for Commissioning in H2

1. Sinopec-Sabic Gulei (Zhangzhou, Fujian)

950,000 tons/year oil-based PP unit, scheduled for commissioning in November 2026

2. Tarim Petrochemical Phase II (Dushanzi, Xinjiang)

450,000 tons/year oil-based PP unit, scheduled for commissioning in Q3 2026

3. China Coal Yulin Phase II (Yulin, Shaanxi)

450,000 tons/year CTO coal-based PP unit, scheduled for commissioning in Q3 2026

4. Huajin Aramco (Panjin, Liaoning)

1 million tons/year oil-based PP unit, scheduled for commissioning in Q4 2026

5. Dongming PetroChina (Heze, Shandong)

350,000 tons/year oil-based PP unit, scheduled for commissioning in Q4 2026

6. Baofeng Energy Phase IV (Ningdong, Ningxia)

500,000 tons/year CTO coal-based PP unit, scheduled for commissioning at the end of December 2026

7. Inner Mongolia Rongxin Chemical (Ordos, Inner Mongolia)

400,000 tons/year CTO coal-based PP unit, scheduled for commissioning at the end of December 2026

8. Zhenhai Refining & Chemical (Ningbo, Zhejiang)

500,000 tons/year oil-based PP expansion unit, scheduled for commissioning at the end of December 2026

Remarks

The commissioning times for all projects in the text are estimates based on public industry information. Actual commissioning progress will be influenced by multiple factors such as engineering construction, equipment debugging, environmental protection acceptance, and market regulation. The final commissioning nodes are subject to the official announcements of each enterprise.