How does the Asian naphtha supply crunch reshape global petrochemical capacity?

How does the Asian naphtha supply crunch reshape global petrochemical capacity?
The Middle East supplies roughly 40% of Asia's naphtha, and the current disruption is accelerating a capacity shakeout already underway. Europe has permanently shut about 12 million tons per year of naphtha cracking since 2023, with ExxonMobil closing its 830,000 t/y Fife steam cracker. Japan's aging ethylene units are running below 70%, and Korea plans to cut 2.7 to 3.7 million tons of naphtha cracking capacity. High-cost, naphtha-dependent plants are exiting, while low-cost regions gain share. Effective supply, not headline capacity, now sets prices.