Viewpoint: Japan may continue naphtha use for petchem

Spanish Market: Oil products, Petrochemicals
22/12/21

Japan's naphtha demand for petrochemical production may not decline as much as biomass or chemically-recycled feedstocks as limited demand has slowed transition to such products.

Demand for conventional naphtha is unlikely to be immediately curbed by biomass feedstock or raw oils and monomers generated from chemical recycling of waste plastics, some Japanese petrochemical companies and the ministry of environment (MOE) said.

Demand for bio- or chemically-recycled plastics has begun to grow, and petrochemical producer Mitsubishi Chemical has received exclusive requests of the environmentally-friendly products from its customers. But other companies view the overall demand outlook as ambiguous, and are unsure if their consumers can absorb premiums. They launched bio- or chemically-recycled plastics projects, pressured by the recent trend towards decarbonisation such as the 2050 carbon neutrality goal set in October 2020.

Imports of bio-naphtha are limited with only petrochemical producer Mitsui Chemicals deciding in May to import 10,000t of bio-naphtha from Finnish company Neste. Mitsubishi Chemical may also consider doing so, but did not disclose further details, while refiner Eneos plans to purchase or manufacture bio-naphtha for bio-ethylene derivative production. Sumitomo Chemical and Idemitsu declined to disclose if they have any import plans.

Many of the bio- and chemically-recycled plastics production will take a few more years to begin commercial operation. Some projects are expected to start after 2023, while some are undergoing feasibility studies and it is unclear when they can be commercialised. Companies recently began attempting to handle higher production costs of bio- and chemically-recycled plastics.

Petrochemical firm Sumitomo Chemical announced the establishment of its new brand of recycled plastics in September, ahead of commercial production, seeking business partners and potential buyers. Rival firm Mitsubishi Chemical decided to optimise its basic petrochemical business unit in December by separating and integrating it with other firms, aiming to further expand investment capacity. Some partnered overseas companies that owned technologies. Refiner Idemitsu began a feasibility study of a chemical recycling business in May.

Bio-plastic production has been unprofitable given limited technology for commercial output, in addition to weak potential demand. Chemical recycling has faced a shortage of waste plastic before stricter export regulations were introduced at the beginning of 2021, in addition to limited demand. Commercial technologies are available but many companies, including environmental engineer Toshiba, withdrew from projects by the mid-2000s as most waste plastics were sold overseas. But recent changes in the business environment have urged firms to explore opportunities, like domestic environmental infrastructure firm JGC purchasing a technology licence from Toshiba.

Japan in January outlined a roadmap to promote bio- and bio-degradable petroleum plastics, aiming to supply a maximum 2mn t/t of bio-plastics by 2030. The country delivered 43,647t of bio-plastics, accounting for just 0.4pc of 9.9mn t of plastic shipments in 2018, according to MOE's latest data.

Japan's state-controlled New Energy and Industrial Technology Development Organisation aims to chemically recycle 3mn t/yr of waste plastics by 2030-31 by further developing technologies with universities and companies. The country chemically recycled 270,000t of waste plastics or 3.2pc out of 8.5mn t in 2019, according to data from Japan's plastic waste management institute.

The ministry of economy, trade and industry expected naphtha demand of 39.2mn kl in the April 2025-March 2026 fiscal year. It is lower by 2.7pc from consumption of 40.3mn kl in 2020-21, according to the Japan Petroleum Association.

Japan imported 22.8mn kl of naphtha during January-September, higher by 8.1pc on the year. The country manufactured 10.5mn kl of naphtha during 3 January-4 December, down by 15.6pc on the year.

Japan's output of ethylene, which is feedstock of most petrochemical products, rose by 7.4pc on the year to 5.2mn t during January-October, according to the Japan petrochemical industry association.

By Nanami Oki

Bio-plastic and chemical recycling projects in Japan
Firm	Project	Commercial operation
Bio-plastic production
Mitsubishi Chemical	Bio-engineering plastic production	2014
Mitsubishi Chemical	Bio-poly butylene succinate production	2017
Mitsubishi Chemical	Bio-polyoxy tetramethylene glycol production	June 2020
Mitsui Chemicals	Petrochemical production from bio-naphtha	October 2021-March 2022
Mitsui Chemicals	Bio-PP production	2024 as earliest
Eneos, Nippon Shokubai, Mitsubishi	Bio-ethylene derivative production, possibly from bio-naphtha or bio-ethanol	April 2024-March 2025
Sumitomo Chemical, Sekisui Chemical	Polyolefine production from wastes	April 2025-March 2026
JGC, Taiyo Oil	Bio-refinery of fuel oil and petrochemical products	April 2027-March 2028
Mitsui Chemicals	Bio-polyester production	n/a
Chemical recycling
JGC	Offer recycling technology generating light, medium and heavy oils from waste plastics, without removing polyvinyl chloride	2022
Sumitomo Chemical	PMMA recycling into MMA monomers	After 2023
Mitsubishi Chemical, Eneos, Mura Technology	Chemical recycling of 20,000 t/yr waste plastics into around 12,000-16,000 t/yr of regenerated oils	April 2023-March 2024
Mitsui Chemicals, Microwave Chemical	Chemical recycling of waste plastics containing PP into raw monomers	n/a
Mitsui Chemicals, BASF	Chemical recycling of waste plastics into raw oils	n/a
Mitsui, PureCycle Technologies	Recycled PP production	n/a
Idemitsu	Resin production by turning waste plastics into regenerated oils	n/a
PS Japan	PS recycling into styrene monomer	n/a
Source: Corporate websites

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19/12/25

Mexico central bank cuts target rate to 7pc

Mexico City, 19 December (Argus) — Mexico's central bank cut its benchmark interest rate by 25 basis points to 7pc, its lowest level since June 2022, maintaining a slower pace in the easing cycle on inflation concerns. The decision marked the eighth rate cut this year and the fourth quarter-point reduction following four consecutive half-point cuts. This year's cuts follow five quarter-point cuts in 2024 from a cyclical peak of 11.25pc in March. The board approved the cut in a 4-1 vote, with deputy governor Jonathan Heath dissenting in favor of holding the rate at 7.25pc. Heath has been the lone dissenter in the past five decisions, consistently urging greater caution. The central bank said the decision reflected "the behavior of the exchange rate, the weakness of economic activity and the possible impact of changes in global trade policies," repeating language used in its last four statements. Gabriela Siller, chief economist at Banco Base, pointed to a "significant change" in the bank's forward guidance, noting a shift toward a less dovish tone. The board said it "will consider when to make further adjustments" to the policy rate, replacing the "will consider cutting" language used in November. Mexican bank Banorte also said the central bank struck a less dovish tone, pointing to a change in its forward guidance. Annual inflation rose to 3.8pc in November from 3.57pc in October, according to statistics agency Inegi. Core inflation, which excludes volatile food and energy prices, accelerated to 4.43pc from 4.28pc. The central bank now sees headline inflation ending 2025 at 3.7pc, up from 3.5pc in its November forecast, while core inflation is projected at 4.3pc, revised from 4.1pc. It also raised its headline and core forecasts for the first two quarters of 2026, while maintaining that both will converge to its 3pc target by the third quarter. The bank said the revisions mainly reflect a "more gradual-than-expected" easing in services inflation, along with a smaller contribution from accelerating consumer goods prices. The board also addressed recent tax reforms, which it expects will have a temporary and not necessarily proportional impact on prices, adding it will update its forecasts as it conducts a comprehensive assessment of the revised tax code's effects. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Viewpoint: Bitumen markets eye pockets of demand

19/12/25

Viewpoint: Bitumen markets eye pockets of demand

London, 19 December (Argus) — Paving activity may strengthen in some European and north African markets in 2026, but several others are expected to see continued declines in bitumen demand. Germany could lead any recovery, market participants said, as a new government plans to expand and maintain the road network. The country — once Europe's bitumen powerhouse — had a weak 2025, but paving work is expected to lift consumption from mid-2026. German bitumen demand has fallen by more than 20pc since 2021, while France and the UK are down by over 25pc in the same period. Budget constraints and high inflation drove these declines. Sweden, Norway and Denmark — already demand drivers in 2025 — could strengthen further in 2026. Road budgets are set to rise as governments prioritise infrastructure and the value of well-maintained highways, possibly linked to higher defence spending as Nato strengthens in Europe. North Africa has also drawn European Mediterranean surplus cargoes , and market participants expect demand from the region to increase next year, led by Algeria, Morocco and some Libyan consumption. Elsewhere, there is little cause for optimism. In France, most participants expect 2026 demand to be weaker than in 2025. With the government beset by regular upheaval and parlous public finances, road spending seems an unlikely priority. Several other northwest and central European countries will also see steady to lower bitumen consumption in 2026. Meanwhile, prospects for a peace deal between Ukraine and Russia remain slim, so a large upswing in Ukrainian import demand looks unlikely next year. Export opportunities outside Europe also appear limited, as Asia-Pacific and the Middle East remain well supplied and demand there stays slow. South Africa, now reliant on imports, is more likely to source from the Mideast Gulf or Pakistan than from the Mediterranean. The prospects of shipping product to the US could improve in the coming months, with Mediterranean bitumen values currently firm relative to crude and fuel oil. But large volumes seem unlikely. Some Mediterranean cargoes moved to the US last year, but the trend was short-lived. In the bitumen freight market, several new larger tankers will enter service in 2026, increasing vessel availability in what will still be a weak market. This could weigh on freight rates but help offset higher costs from the EU ETS scheme, which comes fully into effect in 2026 after its 2024 implementation. Bitumen prices fell in 2025 and are expected to stay under pressure through winter, before seasonal gains from March 2026. Markets should see greater strength relative to fuel oil in summer as bitumen demand typically rebounds then. Demand for bitumen was generally weaker across most European countries in 2025 than in 2024, weighing on prices. Budgets came under pressure and political challenges contributed to a lack of focus on infrastructure and road maintenance spending. Bitumen prices hit historic lows in 2025, partly offsetting inflation-driven increases in building, equipment and material costs. By Jonathan Weston Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Korrektur: Diesel in 2026 teurer als erwartet

18/12/25

Korrektur: Diesel in 2026 teurer als erwartet

In der ursprünglichen Version wurde die CO2-Abgabe inkorrekt angegeben. Dies wurde sowohl in der Tabelle als auch in der Grafik korrigiert. Hamburg, 18 December (Argus) — Händler bieten B7-Diesel für Januar mit einem Aufpreis von 10 €/100l bis 17 €/100l an, teurer als von Argus berechnet. Das ist der bisher höchste Preisanstieg zum Jahreswechsel, der durch eine Erhöhung der CO2-Abgabe und THG-Quote verursacht wurde. Argus hat einen theoretischen Aufschlag von 8,50 €/100l für B7-Diesel berechnet (siehe Grafik). Ein möglicher Grund für den deutlich höher ausfallenden Aufpreis für B7 ist, dass Händler die THG-Kosten aufgrund anhaltender Unsicherheiten anders berechnen als Argus . Das Bundeskabinett hat am 10. Dezember über die Umsetzung der Erneuerbaren Energien-Direktive (RED III) der EU in deutsches Gesetz abgestimmt. Dadurch herrscht im Markt mehr Klarheit mit Blick auf die gesetzlichen Rahmenbedingungen in 2026. Zuvor dürften die Preisen für das kommende Jahr vor allem durch die Unsicherheit bezüglich der genauen Umsetzung von RED III getrieben worden sein. Die THG-Quote wird 2026 von aktuell 10,6 % auf 12 % steigen, weshalb für das Inverkehrbringen fossiler Kraftstoffe mehr THG-Zertifikate vorgewiesen werden müssen. Bis zur Abstimmung am 10. Dezember gingen Marktteilnehmer davon aus, dass fortschrittliche Kraftstoffe künftig nicht mehr doppelt auf die Erfüllung der THG-Quote angerechnet werden dürfen. Dies hat sich nun bestätigt. Der künftige Wegfall der Doppelanrechnung könnte das Beimischen von Biokraftstoffen attraktiver machen und Preise für sowohl Biokraftstoffe und die Übertragung von THG-Zertifikaten erhöhen. Marktteilnehmer rechnen außerdem mit einem Rückgang der Biokraftstoff-Importe aus Asien, wodurch die Quotenerfüllung und somit auch fossile Kraftstoffe in Deutschland teurer werden könnten. Grund hierfür ist zum einen die geplante Abschaffung der Vertrauensschutzregelung , die Käufer unrechtmäßiger THG-Zertifikate vor Aberkennung schützt. Auch herrschte noch Unsicherheit darüber, wie genau die Unterquote für erneuerbare Kraftstoffe nicht-biogenen Urpsrungs (RFNBOs) — wie etwa e-Fuels und grüner Wasserstoff — gestaltet wird. Ein Entwurf vom November beinhaltete bei Nichterfüllung der RFNBO-Unterquote eine Pönale von etwa 120 €/GJ, statt der zuvor vorgeschlagenen 70 €/GJ. Dies wurde mit der Kabinettssitzung am 10. Dezember ebenfalls bestätigt. Auch bei der Einpreisung der CO2-Abgabe für das nächste Jahr sehen sich Händler weiterhin mit Unklarheiten konfrontiert. Einige Händler verwenden für Kalkulationen aktuell einen CO2-Preis von 68 €/t CO2e. Darüber hinaus wird auch die Unsicherheit bezüglich des Auktionsverfahrens eingepreist, da die Auktionen erst im Sommer beginnen und die konkreten CO2-Kosten bis dahin nicht eindeutig sind. Manche Händler planen daher zusätzliche Rücklagen, um etwaige Nachzahlungen decken zu können. Die CO2-Abgabe wird im kommenden Jahr von einem Festpreismodell bei aktuell 55 €/t CO2e in ein Auktionsverfahren übergeleitet, bei dem der Preis einer Emissionsberechtigung zwischen 55 € und 65 € schwanken kann. Eine Emissionsberechtigung entspricht dabei einer Tonne CO2-Äquivalent. Unternehmen, die bei Auktionen leer ausgehen, können nachträglich Emissionsberechtigungen zum Festpreis von 68 € nachkaufen. Außerdem könnte im Sekundärmarkt für Unternehmen, die nicht an Auktionen teilnehmen, der Preis noch höher liegen. Einige Inverkehrbringer halten sich aufgrund dieser regulatorischen Unklarheiten weiterhin mit der Bekanntgabe von Januarpreisen zurück, was die Unsicherheit im Markt zusätzlich verstärkt. Mit dem Kabinettsbeschluss vom 10. Dezember könnten Händler ihre Preisgestaltung für Januar konkretisieren. Für Heizöl liegen die gemeldeten Aufschläge etwa zwischen 2,50 €/100l bis 4,50 €/100l und stimmen somit ungefähr mit den Berechnungen von Argus überein. Von Marcel Pott CO2-Abgabe je 100l € Kosten pro t CO2 B0/HE B7 E5 E10 45 € 12.04 11.22 10.26 9.73 55 € 14.72 13.72 12.54 11.90 65 € 17.40 16.21 14.82 14.06 68 € 18.20 16.96 15.50 14.71 *B7 mit 6,8 l FAME; E5 mit 4,8 l Ethanol und E10 mit 9,66l Ethanol THG- Erfüllungskosten je 100l € B0 B7 E5 E10 2025 9,13 9,70 6,83 6,74 2026 16,33 14,99 11,68 10,72 *Erfüllung der THG-Quote durch Blending und Zukauf von Zertifikaten, Erfüllung des RFNBO-Mandats durch Pönale Kumulierte Kosten THG-Quote und CO2 Abgabe Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2025. Argus Media group . Alle Rechte vorbehalten.

Viewpoint: Japan's hybrid EV use keeps gasoline in mix

18/12/25

Viewpoint: Japan's hybrid EV use keeps gasoline in mix

Tokyo, 18 December (Argus) — Japan's gasoline consumption will continue falling because of its decarbonisation drive, but the country's gasoline consumption is unlikely to reach zero as gasoline-powered cars and hybrid gasoline-electric vehicles (HEVs) account for a vast majority of newly registered passenger cars. Japan's gasoline sales declined at least over 2016-24, with the exception of a slight year-on-year increase of 0.03pc in 2022, data from the Petroleum Association of Japan (PAJ) show. The country's gasoline sales totalled 330mn bl (904,100 b/d) in 2016, falling to below 280mn bl (767,100 b/d) in 2024. The country's transport sector accounted for 19.2pc of total CO2 emissions in the April 2023-March 2024 fiscal year, according to Japan's environment ministry. Half of the transport sector's CO2 emissions came from gasoline in the 2023-24 fiscal year. Tokyo renewed its global warming countermeasures plan in February 2025, which reiterated its target of having all new car sales be "electrified vehicles" by 2035 and to achieve net-zero CO2 emissions through the vehicle lifecycle by 2050, in efforts to abate emissions. But these "electrified vehicles" do not only refer to fully electric-powered EVs nor fuel cell vehicles (FCVs) but also include gasoline-consuming HEVs and plug-in hybrid electric vehicles (PHEVs). This means that Japanese passenger car owners will likely remain dependent on gasoline, even as gasoline consumption declines, given that Japan's preference for hybrids is likely to sustain its momentum for the foreseeable future. The country's gasoline requirement will fall by 2.4pc to 260mn bl (712,300 b/d) in the April 2026-March 2027 fiscal year, compared with the 2025-26 level, based on Japan's trade and industry ministry Meti's outlook. This downtrend is expected to continue by declines of 2.1-2.5 pc/yr at least until 2029-30, largely because of higher fuel efficiency and wider use of HEVs, Meti said. The number of newly registered passenger cars, including imported cars, totalled slightly below 2.4mn units over January-November 2025, data from the Japan Automobile Dealers Association (JADA) show. Out of this total, gasoline-consuming HEVs accounted for 60pc, and gasoline cars hold a 32pc share. Gasoline-powered cars and HEVs have jointly accounted for around 90pc at least since 2020. The share of HEVs in newly registered cars has also grown consistently every year, from 37.1pc in 2020 to 61.1pc in 2024, mostly replacing the share of gasoline cars, while the share of EVs has stalled at 0.6-1.7pc of the total of registered units every year over the same period, data from the JADA show. "The hybrid trend is likely to remain strong going forward. Compared with the time when it seemed the global shift to EVs would happen decisively and rapidly, the momentum now appears to have slowed somewhat," Japan's trade and industry minister Ryosei Akazawa said at an interview with reporters, including Argus , in October. The shift towards EVs has not been as strong as expected, which could have benefited gasoline car makers. But US tariffs on Japanese automobiles likely eroded the profitability of Japanese automakers, with 15pc of their domestic car output exported to the US in 2024, according to Meti. The US tariff rate was lowered to 15pc from 27.5pc in September, but is still far higher than 2.5pc, the rate before US president Donald Trump's additional 25pc automobile tariff took effect in April. To support Japanese automakers given the challenging tariff environment, Tokyo could freeze its environmental performance tax — a levy of 0-3pc — imposed on car owners at the point of acquisition depending on automobile features, such as fuel efficiency. This move could pave the way for gasoline-powered vehicles to regain momentum or pose obstacles to the expansion of EV cars' market share in the coming years. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US House clears hurdle to pass permitting bill

16/12/25

US House clears hurdle to pass permitting bill

Washington, 16 December (Argus) — Republicans in the US House of Representatives have overcome an initial obstacle to passing a marquee permitting overhaul bill after committing to vote on key amendments that would strip out potential benefits for offshore wind. Republicans in the House voted 215-209 in a vote on Tuesday to approve a rule that will dictate the terms of debate for votes later this week on the SPEED Act, which has become the focus of bipartisan efforts to fast-track the permitting process for pipelines, electric transmission lines, railroads and other infrastructure. A group of far-right conservatives initially voted against the rule, but most reversed course during the vote in exchange for revisions that have yet to be made public. The Tuesday vote was one of the last remaining hurdles to House passage of the SPEED Act, which is expected to pick up some Democratic votes when it comes up for a final vote later this week. The House majority typically is responsible for putting up all the votes for a rule, meaning it would only take a few Republicans to block bill debate. Republicans were uncertain they would have enough votes for the rule, as far-right conservatives such as US representative Andy Harris (R-Maryland) and others were lobbying for changes. On Monday, US representative August Pfluger (R-Texas) urged attendees of a conference to put as "much effort as you possibly can" into persuading wavering Republicans to support the permitting bill. Pfluger is the chair of the Republican Study Commission, a caucus that represents a majority of House Republicans. "Go talk to them and let them know how important this is," Pfluger said during an event organized by the think tank the Conservative Coalition for Climate Solutions. Ahead of the vote, an industry coalition on Tuesday released a joint letter offering "strong support" for the bill. Among the signatories were the American Petroleum Institute, the US Chamber of Commerce, the Association of American Railroads and the US LNG Association. President Donald Trump has yet to take an explicit position on the SPEED Act, but administration officials are optimistic permitting legislation could be enacted. "I think we are at a time where the chance of a real permitting reform bill is higher maybe than it's ever been," US energy secretary Chris Wright said at the event on Monday. The SPEED Act would focus on the implementation of the National Environmental Policy Act (NEPA), a decades-old law that requires federal agencies to prepare environmental reviews of infrastructure projects. Pipeline companies and renewable energy developers alike blame the law for costly delays, both because of the time it takes for agencies to issue reviews and then the risks that permits will be thrown out because of lawsuits. The bill would narrow the scope of environmental reviews, aligning with a unanimous US Supreme Court ruling this summer. But the bill's most significant changes would make permits more durable. Even if a court found a NEPA review was flawed, the bill would keep permits intact during further analysis. And in a last-minute change, the bill would offer more permit "certainty" by limiting the government's ability to rescind prior approvals. That could protect pipeline permits such as the now-canceled Keystone XL pipeline, while also stopping Trump from halting more offshore wind projects. But the permit certainty language drew concern from far-right conservatives who oppose offshore wind. House Republicans in response agreed to vote on an amendment sponsored by Harris and others that would remove the "permit certainty" changes. Two other amendment votes also backed by Harris would stop expedited permitting treatment in the SPEED Act for offshore wind or any project that Trump has sought to block. Passage of those amendments could cost some Democratic support for the bill. Even if the bill passes, it is expected to be subject to major changes in the US Senate to attract enough support from Democrats to prevent a filibuster. Senate Democrats are hoping to insert language that would prevent what they describe as a "solar ban" being enforced by the Trump administration. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Viewpoint: Japan may continue naphtha use for petchem

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