Chemical markets across Asia are seeing more trade flows from low cost producers such as China and the US as competition grows amid rising overcapacity.

-          Asia downstream markets not expected to recover until 2027/8

-          Low cost producers such as US, China, competing for market share

-          US tariffs, sanctions disrupting regional chemical markets

-          Moves in China, South Korea, Japan to close uncompetitive plants may help rebalance markets

-          China producers are exporting to other regions, such as Latin America

-          New China acetic acid plants add 10% to capacity in 2025

-          Downstream demand growth not keeping pace

-          Since the podcast was recorded on 3 November, a major plant has shut, driving up demand for imports into India, potentially widening arbitrage for Atlantic spot trades  

-          In China, retirement of older acetic acid plants unlikely to offset capacity addition in near future