China is apparently planning to add around 10 million tons of paraxylene manufacturing capacity by March 2020, as per sources- and this could result in PX production cuts in neighbouring countries. Currently, a bulk of the chemical paraxylene used by China is being imported from Japan and Korea. China is currently the largest consumer of the petrochemical, importing roughly 60% of its requirements to feed its ever-growing demand. Roughly half of its imported paraxylene comes from both South Korea and Japan.
China's decision to manufacturing its own supply will undoubtedly hurt its biggest suppliers, including Japan's JXTG Holdings and South Korea's Lotte Chemical, and Hyundai Cosmo Petrochemical. According to industry experts, major Asian exporters of paraxylene will likely see drastic cutbacks in their outputs as China initiates its plans.