China's Economy Outlook and Chemical Industry Implications

Recent cracker closure announcements in Europe and Japan may be the first of many as the industry grapples with chronic overcapacity driven by China and the Middle East. 

-          Three cracker closure announcements in Europe, Japan since late March

-          1.4 million tonnes of ethylene capacity affected, but up to 20 million may be needed

-          Europe, Japan, South Korea suffer from higher costs 

-          Negative chemicals demand growth possible in China

-          China still dominates global chemical markets

-          Opportunity to pivot sites to low carbon, local markets