Japan petrochemical plant closures planned due to weakening demand, reveals Reportbuyer.com

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Japanese petrochemical producers prepare to restructure operations

Report Buyer

The Japan petrochemical industry has been beset by declining domestic demand, the appreciation of the yen and competition from new plants starting up in the Middle East and Asia. The situation is unlikely to improve radically in 2013 with growth set to decline to 1.2% from 1.5% as the country struggles to find new markets and suffers because of weakening demand both at home and abroad. Meanwhile, the yen is set to appreciate from an average of JPY78/US$ in 2012 to JPY75/US$ in 2013 and we believe feedstock prices will remain high. In this context, competition is likely to be fierce with an additional 3.39mn tonnes per annum (tpa) of ethylene capacity set to come online in Asia over 2013 (on top of growth of 6.25mntpa in 2012). Closures are planned over the next two years as Japanese producers seek to restructure operations, but a further slump in both domestic and regional markets could lead to permanent shut-downs.

The Japan Petrochemicals Report 2013 examines trends in the olefins, polymers and aromatics segments and assesses the long-term viability of domestic production as Japanese producers face tougher competition and growing pressure on margins. The report also looks at the strengths and weaknesses of the Japanese petrochemicals industry and how producers are minimising investment risk.

View the Japan Petrochemicals Report 2013

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