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Japan: Refiners scramble ahead of consolidation wave

 |  November 24, 2014

Japanese refiners are reportedly lowering crude distillation capacities as the market scrambles to adhere to a new government directive, but experts say the efforts won’t likely be enough to avoid consolidation in the industry.

Reports say the government launched a new effort aimed at cutting refining capacity by 20 percent from 2007 levels to balance supply and demand. But domestic demand has dropped between 2 and 3 percent every year since, reports say.

Those drops mean refiners will have to collaborate to stay afloat, whether through mergers or alliances and joint ventures.

According to some industry experts, the number of competitors in the market could drop to four from the current five players.

Full content: Hellenic Shipping News

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