Issue 3/2022 - Global Chemicals Quick Review

Global hydrogen production capacity will grow rapidly

As a series of domestic and international policies pave the way for the large-scale launch of hydrogen, a carbon-free energy carrier, global hydrogen production capacity will grow rapidly
.
In 2025, the world will achieve a hydrogen electrolyser production capacity
of 4.
4 million tons per year.
After 2025, the deployment of global hydrogen electrolyzers will advance rapidly, and driven by large-scale projects in Australia, the Middle East, West Asia and Europe, the production capacity of hydrogen electrolyzers will reach 16.
7 million tons / year
in 2030.
Europe is a global leader in developing hydrogen policies and strategies, with ambitious targets
for renewable and low-carbon hydrogen production.
The EU aims to install 6 gigawatts of renewable hydrogen production capacity by 2024 and 40 gigawatts by 2030, with the UK pledging to add another 5 gigawatts
by 2030.
The S&P Global Platts database also expects global blue hydrogen production capacity to reach 2.
55 million mt/year in 2025 and 7.
5 million mt/year
in 2030.

Chemical production and trade in the Arabian Gulf region will recover

According to the Gulf Petrochemical and Chemical Association (GPCA), the Arabian Gulf petrochemical industry will see an increase
in production, sales and international trade from 2021 to 2022.
Increased economic activity in the region, supported by rapid vaccination and a global economic rebound, will support the recovery
of its chemical sector.
The GPCA said higher oil production and an improved outlook for oil prices are boosting revenue
in the region.
GPCA Secretary General Abdulwahab Al-Sadoun said the chemical industry in the Arabian Gulf region is recovering
from a period of severe disruptions, slowing growth and an unprecedented decline in consumer demand across a range of end-user industries.
In addition to maintaining operational and supply chain resilience, GCC producers will next important tasks to achieve their sustainability goals, including reducing emissions, investing in innovative technologies, driving partnerships across the value chain to reduce the environmental footprint of their and their products, and advancing the plastics recycling agenda
.

The outlook for the U.
S.
chemical industry in 2022 is promising

According to the American Chemical Industry Council (ACC), the U.
S.
chemical industry reversed itself in 2021, with production excluding pharmaceuticals increasing by 1.
4 percent, compared to a 3.
5 percent
decline in 2020.
However, chaotic global supply chains and adverse weather events limited U.
S.
chemical production in 2021, and the recovery did not reach its full potential
.
Mark Costa, CEO of Eastman Chemical Chemical, said, "Consumer demand for our products is very strong in all of our markets, which has led to a lot of growth for us, but this is limited
by supply chain constraints.
We might have done better
without these restrictions.
ACC predicts that U.
S.
chemical production growth will pick up to 4.
3%
in 2022.

Demand for lubricants in Japan declined

In November 2021, Japan's finished lubricant production (including exports) fell 3% year-on-year to 129,900 tons, the third lowest month in 2021, after October (129,800 tons) and May (123,900 tons), the highest value of Japan's lubricant production in March was 180,900 tons, and consumption fell 11% year-on-year to 99,000 tons, but increased by 3% month-on-month; Imports fell 21% to 19,400 mt from 24,700 mt in November 2020, and Japan's lubricant imports grew strongly to more than 25,100 mt in October and September 2021, while exports edged up 3% year-on-year to 48,200 mt, but up 31%
from 36,700 mt in October.