OGJ FOCUS: Competitive pressures changing Asian petchems

03/08/2010
Massive growth in Chinese and Middle East petrochemical capacities and prospects of intense competition for Asian markets from Middle East producers are prompting profound change in Asia's petrochemical industry. Growth in Asian capacity could support naphtha pricing, while competition from the Middle East will put pressure on margins and naphtha prices.It is possible that low-cost exports from the Middle East may force some ethylene plants in Asia to close (especially in Japan). Consuming countries may retaliate, however, by imposing tariffs and dumping regulations to protect their industries.Asian petrochemicals are witnessing rapid and fundamental changes with the:• Emergence of C...
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