Core Viewpoint - Mitsui Chemicals is strategically divesting its 50% stake in Sinopec Mitsui Chemicals Co., Ltd. (SSMC) to Shanghai Gaoqiao Petrochemical Co., Ltd. as part of its global strategy adjustment, focusing on green chemicals and high-performance materials due to declining domestic demand and increasing overseas competition [2][3]. Group 1: Company Actions - The divestment of SSMC is a response to the continuous decline in performance, with a projected loss of 10.6 billion yen for the fiscal year 2025 [3]. - Mitsui Chemicals is considering restructuring its core business units related to basic and green materials, including phenols, industrial chemicals, and sustainable raw materials [2]. Group 2: Industry Context - The domestic phenol production capacity in China has reached 6.39 million tons, with increasing industry concentration, including major players like Zhejiang Petrochemical and Wanhua Chemical [5]. - The industry is facing an oversupply situation, with an expected additional capacity of 995,000 tons in 2025 from various companies [5]. - Recently, INEOS Phenol, the world's largest producer of phenol and acetone, announced plans to permanently cease production in Germany, indicating broader challenges in the chemical sector [4]. Group 3: Remaining Operations in China - Mitsui Chemicals maintains several significant operations in China, including: - Shanghai Sinopec Mitsui Elastomers Co., Ltd., producing ethylene-propylene-diene monomer (EPDM) with an annual capacity of 75,000 tons [6]. - Tianjin Mitsui Nonwoven Fabrics Co., Ltd., producing nonwoven fabrics with an annual capacity of 15,000 tons [7]. - Foshan Mitsui Chemical Isocyanate Co., Ltd., focusing on polyurethane products for the automotive industry [8]. - Zhangjiagang Free Trade Zone Mitsui Yuntuo Composite Materials Co., Ltd., producing high-performance polymer composites [8]. - Plans to expand production capacity in Shanghai for thermoplastic elastomers and adhesive polyolefins by 2026 [8].

Group 1: Industry Overview - Refined glycerol is a highly purified form of glycerol with a purity of over 99.5%, produced from crude glycerol, and is widely used in food, pharmaceuticals, cosmetics, and industrial applications [1][2][3] - China is the largest producer and consumer of glycerol globally, with a projected refined glycerol production of 202,500 tons in 2024, an increase of 30,300 tons from 2023 [1][3] - The demand for refined glycerol in China is expected to be 890,300 tons in 2024, a decrease of 6,900 tons compared to 2023 [1][3] Group 2: Import and Export Dynamics - China's refined glycerol import volume is projected to be 693,500 tons in 2024, a decrease of 37,200 tons from 2023, with an import value of approximately $39.06 million, down by $3.56 million [5] - The export volume of refined glycerol is expected to remain stable at 5,700 tons in 2024, with an export value of $7.87 million, a decrease of $1.14 million from 2023 [5] Group 3: Industry Chain Analysis - The upstream of the refined glycerol industry primarily involves natural oils such as palm oil and soybean oil, while the downstream applications include food additives, pharmaceuticals, and personal care products [7][9] - In the food industry, refined glycerol is used as a moisturizer, solvent, sweetener, and stabilizer, contributing to the growth of the food additives sector, which is projected to increase from 12.69 million tons in 2019 to 17.59 million tons by 2024 [11] Group 4: Competitive Landscape - The refined glycerol market is characterized by intense competition, with key global players including P&G Chemicals, KLK OLEO, and Wilmar International, alongside domestic companies such as Yangzhou Feiyang Chemical Co., Ltd. and Langxi Jinghe Biological New Materials Co., Ltd. [13][15] Group 5: Future Trends - The market for refined glycerol is expected to grow steadily, driven by its applications in personal care, food, and pharmaceuticals, with increasing demand for sustainable and green products [16] - The acceleration of domestic production of high-purity glycerol is anticipated as technology advances, enhancing the market potential for refined glycerol [16]