Navigating Competition: Japan's Petrochemical Strategy

European petrochemical leaders should take inspiration from Japan, which is further ahead in reducing base chemicals while expanding in specialties and low carbon technologies. 

-          Japan hit by high naphtha feedstock costs, growing global overcapacity

-          70% of crackers are more than 50 years old

-          More than 10% of Japan’s crackers could close

-          Downstream production also closing such as polyethylene terephthalate (PET) and paraxylene (PX)

-          Japan basic chemicals losing ground, new focus on specialties 

-          Pushing materials for semiconductors, electronics 

-          Also expanding into bio-naphtha and pyrolysis oil 

-          Japan’s chemical companies want to licence recycling technologies

-          Using ammonia and hydrogen to reduce dependence on LNG

-          South Korea chemicals face existential crisis