Introduction

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