Refined Products, Chemicals, Naphtha, Olefins
April 08, 2026
INFOGRAPHIC: Asia cracker rationalization continues as margins weaken
By Zachary Ooi
Editor:
HIGHLIGHTS
Asia cuts naphtha cracker capacity amid glut
Japan removes 25% ethylene output by 2030
South Korea targets 20%-28% capacity reduction
As olefins markets enter 2026, Asian operators continue to review and rationalize naphtha-fed steam cracker capacity amid oversupply from new capacity additions.
Japan is set to see significant reductions, with over 25% of its ethylene capacity expected to be removed. Three crackers are scheduled to close between 2027 and 2028, including Maruzen Petrochemical (490,000 mt/year), Idemitsu Kosan (374,000 mt/year) in Chiba, and ENEOS (460,000 mt/year) in Kawasaki. In addition, the Asahi Kasei/Mitsubishi Chemical cracker in Mizushima (567,000 mt/year) is planned to shut by 2030.
In South Korea, the Ministry of Trade, Industry and Energy aims to trim naphtha-fed steam cracker capacity by 2.7 million–3.7 million mt/year, roughly 20%–28% of total capacity. South Korea currently has around 13 million mt/year of ethylene capacity, with major crackers located in Ulsan, Daesan, and Yeosu.
Lotte Chemical's Daesan cracker and Yeochun NCC's No. 2 and No. 3 units have already been slated for closure. To date, announced closures total around 2.4 million mt, with one or two more shutdowns expected, potentially bringing the total to about 4 million mt.
