Japan Ethylene Facility Operation Rate Hits Record Low in March

Tokyo, April 23 (Jiji Press)--The operation rate of ethylene production facilities in Japan fell 7.1 percentage points from the previous month to a record low of 68.6 pct in March, the Japan Petrochemical Industry Association said Thursday.

The decline came as many petrochemical manufacturers decided to cut ethylene output amid the ongoing Middle East crisis, while some ethylene facilities were shut down for routine maintenance.

Of the 12 ethylene facilities nationwide, which produce basic chemicals from petroleum-derived naphtha for products such as plastics and synthetic fibers, four were undergoing regular checkups in March.

Meanwhile, operating rates were reduced at six other ethylene facilities due to uncertainty over naphtha procurement amid the de facto closure of the Strait of Hormuz, a key chokepoint for oil shipments.

The minimum operating rate required for stable facility operation is estimated to be between 60 pct and 70 pct.

[Copyright The Jiji Press, Ltd.]