Japan Chemicals: Assessing the impact of the Middle East situation (Update 12)

研报英文原文证据摘录

Japan Chemicals: Assessing the impact of the Middle East situation (Update 12)

Japan Chemicals

20 July 2026 Citi Research

Figure 1. Chemical sector supply chains

Petrochemical Complex

Crude Basic Petrochemical

Oil Naphtha Naphtha Cracking Plant Petrochemical Products Petrochemical Derivatives

Petroleum Refineries Related Industries Plants

（Ethylene Plant） Derivatives Plants

Using basic petrochemical products as feedstock, Crude oil is seperated in distillation towers Naphtha is seperated through Manufacture diverse end products using various petrochemical dereivatives into fractions such as naphtha, gasoline, and heavy oil cracking furnaces (cracker units) petrochemical derivatives as raw materials (intermediate products) are produced

Basic Petrochemical Naphtha Petrochemical Derivatives Automotive Products Gasoline Plastics Engineering Plastics Olefin Hydrocarbons Light Oil Polyethylene Tires Ethylene（C2） Heavy Oil Polypropylene

Petroleum Gas Propylene（C3） PVC Electronics

Butadiene（C4） Polystrene, etc. Semiconductor Materials

Display Materials

Aromatic Hydrocarbons Coating Raw Materials / Solvent Lithium-ion Battery Materials

Benzene（B） Polyurethanes

Toluene（T） Ethyl Acetates, etc. Food

Xylene（X） Food Packaging Materials

Synthetic Fiber Raw Materials Agrochemicals/Fertilizers

Acrylonitrile

Terephthalic Acid, etc. Pharmaceuticals

Pharmaceutical Raw Materials

Synthetic Rubber

Styrene-butadiene Rubber Housing & Construction

Chloroprene Rubber, etc. Paints

Construction Materials

Apparel

Fibers

© 2026 Citigroup Inc. No redistribution without Citigroup’s written permission.

Source: Citi Research, company data

Figure 2. Utilization at domestic ethylene plants (%)

100% 1,000

90% 800

Production Volume (RHS)

Utilization Rate

80% 600

70% 400

60% 200

50% 0