Ethylene Plant Operating Rate Hits Record Low in Japan

Tokyo, May 21 (Jiji Press)--The ethylene plant operating rate in Japan hit a record low of 67.3 pct in April, the Japan Petrochemical Industry Association said Thursday.

“The operating rate has been reduced in order to maintain supplies,” Koshiro Kudo, chairman of the association and president of major chemical maker Asahi Kasei Corp., said.

Meanwhile, ethylene production in April increased 3.6 pct from the previous month to 283,500 tons, the association said. The increase came as a plant that had been undergoing regular checkups was brought back online.

Ethylene, made from naphtha derived from crude oil, is used as a material for plastics and fibers.

Concerns over naphtha supplies have loomed amid turmoil in the Middle East. Kudo said that “we have secured naphtha more steadily compared with March” by sourcing it domestically and from regions other than the Middle East.

[Copyright The Jiji Press, Ltd.]