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Excessive production capacity in Asia will cause the prospect of the Japanese petrochemical industry to dim
2023/7/13
The Japan Petrochemical Industry Association stated that due to the slowdown of global economic growth, the Asian region plans to put into production new cracking devices, and the situation where an olefin is too required will continue in the short term.
Anxun Si, the global energy chemical industry market information service provider, said that due to the slowdown of global economic growth, Asia ’s production capacity expands rapidly, the Japanese petrochemical industry will be dim after the remaining time of this year. According to a report released by the Japan Petrochemical Industry Association in June, in the first half of the year, the Japanese cracking device was forced to operate at a low operating rate because it is expected that China's demand will not recover until the second half of the year.
Sinopec industry's production capacity growth shakes the Asian market
In recent years, under the circumstances of downturn, the rapid growth of the Chinese petrochemical industry has shocked the Asian market. China is the world's second largest economy and the main importer of petrochemical products. In recent years, China has actively promoted petrochemical products to be self -sufficient, and in some products, it has changed from a net importer to a net exporter. For example, since the fourth quarter of 2020 and 2021, the net importing countries of refined pairing pupaic acid (PTA) and polyvinyl chloride (PVC) have been transformed into net exporters.
Official data show that China's manufacturing industry continues to shrink in May, and imports and exports have shrunk. Due to weak domestic demand, the supply of new petrochemical products will have to find export channels. The Japan Petrochemical Industry Association said that the demand for olefin in China is expected to recover in the second half of the year.
Japanese petrochemical product output declines
According to a report from the Japan Petrochemical Industry Association, the production of ethylene in Japan fell by 14.2%in 2022, to the historical lowest level of 5.45 million tons, and below the 2020 epidemic period.
Industry data shows that compared with 2021, the output of 20 petrochemical products mentioned in the Japan Petrochemical Industry Association reported atrophism last year, of which the output of ethylene glycol (EG) decreased the largest to 34%, followed by the styrene monomer (followed by monomer ( SM) The output decreased by 21%, and the output of acryline-butadiene-lyrene (ABS) resin decreased by 19%.
At the 41st Asian Petrochemical Industry Conference held in May, the president and chief of the Japanese Petrochemical Industry Association and chief of chemistry said that due to weak demand, the average operating rate of the Japanese petrochemical plant was about 80%. The Japan Petrochemical Industry Association said that since August last year, the operating rate of two Japanese cracking devices in Japan was less than 90%.
Last year, the output of major plastics such as low -density polyethylene polyethylene (LDPE), high -density polyethylene (HDPE), polypropylene (PP), polystyrene (PS), and polyvinyl chloride (PVC) decreased by 10.2%, which was 634 10,000 tons. According to the Japan Petrochemical Industry Association, due to the severe economic growth situation, Asia is planning to put into production many new cracking devices, and the situation where an olefin is excessive will continue in the short term. In addition, ethylene goods with cost -competitive ethylenes from the United States also flow into Asia, forcing Japanese cracking devices to run at a lower level of operating rate.
This year's prospect is still worrying
The Japan Petrochemical Industry Association predicts that this year's domestic and export demands of phenyl benzene, toluene, and diene will be the same as last year. Japan last year fell by 5%to 9.44 million tons. For the styrene single, Japanese manufacturers may adjust their output because the global supply of excessive demand will continue. For chlorohylene monomers (VCM), domestic production in Japan is expected to remain unchanged, but due to the increase in the demand for downstream polyvinyl chloride (PVC) worldwide, exports will begin to grow. According to data from the Japan Petrochemical Industry Association, due to the downturn in the key downstream automobile and home appliances, Japan's SM exports decreased by 44%to 305,000 tons last year, and the output fell 21%to 1.54 million tons.
According to data from the International Monetary Fund (IMF), after the economic growth rate of Japan slowed down to 1%last year, this year will increase slightly to 1.3%this year. However, recently released official data shows that in the first three months of this this this year, the Japanese economy unexpectedly increased by 2.7%, higher than the original estimate of 1.6%. However, the prospects of the remaining time this year are still uncertain. Due to the slowdown in global economic growth, exports will continue to be hit due to high inflation and interest rates.
Anxun Si, the global energy chemical industry market information service provider, said that due to the slowdown of global economic growth, Asia ’s production capacity expands rapidly, the Japanese petrochemical industry will be dim after the remaining time of this year. According to a report released by the Japan Petrochemical Industry Association in June, in the first half of the year, the Japanese cracking device was forced to operate at a low operating rate because it is expected that China's demand will not recover until the second half of the year.
Sinopec industry's production capacity growth shakes the Asian market
In recent years, under the circumstances of downturn, the rapid growth of the Chinese petrochemical industry has shocked the Asian market. China is the world's second largest economy and the main importer of petrochemical products. In recent years, China has actively promoted petrochemical products to be self -sufficient, and in some products, it has changed from a net importer to a net exporter. For example, since the fourth quarter of 2020 and 2021, the net importing countries of refined pairing pupaic acid (PTA) and polyvinyl chloride (PVC) have been transformed into net exporters.
Official data show that China's manufacturing industry continues to shrink in May, and imports and exports have shrunk. Due to weak domestic demand, the supply of new petrochemical products will have to find export channels. The Japan Petrochemical Industry Association said that the demand for olefin in China is expected to recover in the second half of the year.
Japanese petrochemical product output declines
According to a report from the Japan Petrochemical Industry Association, the production of ethylene in Japan fell by 14.2%in 2022, to the historical lowest level of 5.45 million tons, and below the 2020 epidemic period.
Industry data shows that compared with 2021, the output of 20 petrochemical products mentioned in the Japan Petrochemical Industry Association reported atrophism last year, of which the output of ethylene glycol (EG) decreased the largest to 34%, followed by the styrene monomer (followed by monomer ( SM) The output decreased by 21%, and the output of acryline-butadiene-lyrene (ABS) resin decreased by 19%.
At the 41st Asian Petrochemical Industry Conference held in May, the president and chief of the Japanese Petrochemical Industry Association and chief of chemistry said that due to weak demand, the average operating rate of the Japanese petrochemical plant was about 80%. The Japan Petrochemical Industry Association said that since August last year, the operating rate of two Japanese cracking devices in Japan was less than 90%.
Last year, the output of major plastics such as low -density polyethylene polyethylene (LDPE), high -density polyethylene (HDPE), polypropylene (PP), polystyrene (PS), and polyvinyl chloride (PVC) decreased by 10.2%, which was 634 10,000 tons. According to the Japan Petrochemical Industry Association, due to the severe economic growth situation, Asia is planning to put into production many new cracking devices, and the situation where an olefin is excessive will continue in the short term. In addition, ethylene goods with cost -competitive ethylenes from the United States also flow into Asia, forcing Japanese cracking devices to run at a lower level of operating rate.
This year's prospect is still worrying
The Japan Petrochemical Industry Association predicts that this year's domestic and export demands of phenyl benzene, toluene, and diene will be the same as last year. Japan last year fell by 5%to 9.44 million tons. For the styrene single, Japanese manufacturers may adjust their output because the global supply of excessive demand will continue. For chlorohylene monomers (VCM), domestic production in Japan is expected to remain unchanged, but due to the increase in the demand for downstream polyvinyl chloride (PVC) worldwide, exports will begin to grow. According to data from the Japan Petrochemical Industry Association, due to the downturn in the key downstream automobile and home appliances, Japan's SM exports decreased by 44%to 305,000 tons last year, and the output fell 21%to 1.54 million tons.
According to data from the International Monetary Fund (IMF), after the economic growth rate of Japan slowed down to 1%last year, this year will increase slightly to 1.3%this year. However, recently released official data shows that in the first three months of this this this year, the Japanese economy unexpectedly increased by 2.7%, higher than the original estimate of 1.6%. However, the prospects of the remaining time this year are still uncertain. Due to the slowdown in global economic growth, exports will continue to be hit due to high inflation and interest rates.
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