PODCAST: Cracker closures could be first of a big wave as overcapacity grows

BARCELONA (ICIS)–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 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

In this Think Tank podcast, Will Beacham interviews ICIS Insight Editor Nigel Davis, ICIS Senior Consultant Asia John Richardson and Paul Hodges, chairman of New Normal Consulting.

Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS.

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Read Paul Hodges and John Richardson’s ICIS blogs.