What Are Global Petrochemical Giants Doing Amid a Global "Low-Activity" Industry Phase?

Source: Chuangketie SABIC (Saudi Basic Industries Corporation) Systematically advancing localized industrial clustering while pursuing selective global expansion As the leader of Saudi Arabia's petrochemical industry, SABIC emphasizes a "systems engineering" approach to domestic development. Centered on the Jubail Industrial City, it integrates project implementation, deep localization of the industrial chain, low-carbon infrastructure construction, and capital operations. Globally, SABIC’s strategy reflects a more resolute approach to "selection and prioritization." In Asia—especially China—the company is building a fully localized supply chain spanning from basic feedstocks to high-performance materials through its flagship project, the world-class integrated petrochemical complex in Gulei, Fujian, along with investments in companion engineering plastics compounding facilities. This aims to deeply embed itself in Asia’s high-growth markets. Simultaneously, SABIC is expanding production capacity for polyphenylene ether (PPE) oligomers—used in printed circuit boards (PCBs) for AI servers and 5G base stations—to directly target the high-growth, high-value-added electronics and electrical sector. In stark contrast, following the permanent shutdown of its cracking units in Teesside (UK) and elsewhere, SABIC has escalated its approach toward high-cost European assets—from "shutdown optimization" to "strategic exit." LG Chem Shifting momentum: focusing on battery materials and green transition LG Chem has recently submitted a restructuring plan for its domestic petrochemical business, optimizing—or even reducing—certain traditional capacities to cope with industry-wide profitability pressures. In sharp contrast stands its aggressive push into battery materials and firm market positioning. Technologically, LG Chem is promoting its innovative "Lithium Precursor-Free" (LPF) cathode material and has commenced mass production, aiming to reduce both costs and carbon footprint by shortening the manufacturing process. Market-wise, North America has become its strategic priority. This combination of "technological differentiation + localized supply chains + long-term order commitments" underscores LG Chem’s determination to secure its position amid the irreversible trend toward electrification. Mitsubishi Chemical Group Focusing on high-value-added sectors Mitsubishi Chemical Group is explicitly channeling growth resources into high-value-added material sectors such as electrification, semiconductors, and food packaging. Regarding sustainability, its initiatives are evolving beyond plastic chemical recycling toward more advanced carbon-circular technologies. A chemical recycling facility built jointly with ENEOS at the Ibaraki plant has recently been completed—marking a strategic shift from R&D…

Urgent Alert! A New Round of Sharp Price Hikes in Plastics & Chemicals Is Imminent! Houthi Forces Block the Red Sea—Price Increase Notices Are Already En Route for April!

This conflict thousands of miles away in the Middle East is rapidly transmitting shockwaves to raw-material warehouses in Chinese factories, production facilities at European chemical enterprises, and price tags on plastic products worldwide. The 'Double Chokepoints': Hormuz + Bab el-Mandeb — A 'Deadly Synergy' The Houthis’ involvement poses its gravest threat—not from missiles themselves—but from their ability to strangle global energy lifelines. The Bab el-Mandeb Strait, the narrow waterway linking the Red Sea and the Indian Ocean, is only 29 kilometers wide at its narrowest point. It handles over 4.2 million barrels of oil per day—more than 5% of global seaborne oil trade—and serves as the sole maritime route for Persian Gulf crude traveling via the Suez Canal to Europe and North America. Approximately 12% of global trade volume—and a nearly equivalent share of seaborne oil trade—must pass through this chokepoint. Now, this passage is forming a 'deadly synergy' with the already "de facto closed" Strait of Hormuz. Since February 28, when the U.S. and Israel launched military strikes against Iran, the Strait of Hormuz—the critical corridor handling roughly 30% of the world’s oil shipments—has remained effectively shut down for an entire month. Image source: CCTV News What does this mean? The maritime crude export routes of core oil-producing nations—including Saudi Arabia, Iraq, Kuwait, and the UAE—are now facing a 'double chokehold' from east and west. Estimates suggest that if both passages remain paralyzed simultaneously, over 24 million barrels of daily oil transport would be disrupted—nearly one-quarter of global oil trade. From Crude Oil to Plastics: The 'Domino Effect' Across the Value Chain For the chemical industry, the crisis’s impact extends far beyond oil prices alone. The Middle East functions as the 'granary' of global chemical feedstocks, accounting for over 30% of global chemical production capacity. Once feedstock supplies are severed, the entire value chain begins collapsing sequentially. First domino to fall: Methanol and olefins. SABIC has officially declared force majeure on its 5-million-ton-per-year methanol production capacity at the Ar-Razi plant in Jubail, halting all operations. According to Morgan Stanley’s latest report, similar force majeure declarations have spread across ten countries, totaling over 31 notices covering key chemical products including ethylene, propylene, and polyethylene. Second domino: A wave of shutdowns across Asian chemical plants. Japan’s ethylene output dropped sharply by 23% month-on-month in February, hitting a historic low of 334,200 tons; naphtha cracker utilization rates fell to 75.7%—the lowest since June last year. South Korea’s largest petrochemical enterprise, LG Chem, has decided…

SABIC Subsidiary Approved for 1.8 Million Ton Methanol Project in Jubail

Sep 14, 2026

SABIC's AR-RAZI secured raw material approval for a new 1.8 million ton/year methanol facility in Jubail. The project supports Saudi Vision 2030 goals, though final investment decision remains pending.

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2026-09-14

SABIC Subsidiary Approved for 1.8 Million Ton Methanol Project in Jubail

SABIC Subsidiary Approved for 1.8 Million Ton Methanol Project in Jubail

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