With Asian chemical producers forced to cut operating rates through lack of Middle East feedstocks, it is time for industry leaders to move to a more regional business model.

- Chemical industry has relied for decades on global supply chains

- Asia crackers forced to cut operating rates as Middle East raw materials dry up

- “Just in time” stocks need to be increased to “Just in case”

- CEOs may rethink, consider more local, less vulnerable supply chain options

- World may regroup into three trading zones focussed on Americas, China/Asia, Europe

- High levels of debt will make companies much more cautious

- Trading, pricing of chemicals has become very complicated in chaotic upstream environment

In this ICIS Think Tank podcast, Will Beacham interviews ICIS Insight Editor Tom Brown and Paul Hodges, chairman of New Normal Consulting.

Europe acrylonitrile butadiene styrene (ABS) editor Stephanie Wix, Asia ABS Senior Editor Angeline Soh, and Senior Data Analyst Yolanda Chen discuss the impact of the recently confirmed definitive anti‑dumping duties (ADD's) on ABS imports from South Korea and Taiwan, with host Aviva Zhang, Global Lead for Styrenics and Industry Analyst for Styrene China.

The team examines how the duties are reshaping trade flows, the continued weakness in Europe ABS demand, the shifting strategies among Asian producers, and the indirect risks from rising geopolitical tensions on upstream styrene costs and freight routes.

• European Commission confirmed definitive anti-dumping duties on 13 February 2026
• Taiwan loses further European market share; China sees limited but growing opportunities
• European demand remains subdued; buyers reassess import options
• Asia sees seasonal demand improvement but lower overall 2026 growth expectations
• US–Iran tensions may tighten styrene supply and extend import lead times for ABS and upstream styrene

SINGAPORE (ICIS)--Asia's naphtha inventories are rapidly depleting as the ongoing Middle East conflict disrupts crude flows through the Strait of Hormuz, a vital chokepoint through which around 20% of global crude supply passes.

With crude oil exports from the Middle East constrained, naphtha resupply to Asia has tightened sharply. Estimates suggest Asian petrochemical producers are holding just two to three weeks of working inventory, raising concerns that prolonged disruption could trigger run cuts or even major shutdowns if replenishment fails to materialize.

In this podcast, ICIS principle analyst Darryl Xu breaks down how the Middle East conflict is constraining naphtha availability to Asia, and the potential downstream impact on steam crackers across the region.

• US-Iran conflict disrupts Strait of Hormuz, preventing Middle East crude exports
• Asian producers adjust run rates to manage depleting naphtha inventories
• Middle East refiners face pressure to export amid limited product containment