rki.news | Sources Xinhua

TOKYO, May 31 — Japan’s ethylene production plants recorded their lowest operating rate on record in April, as disruptions linked to Middle East tensions restricted supplies of crude oil and naphtha, a key feedstock for petrochemical production, local media reported.
The utilization rate fell to 67.3 percent, the weakest level since records began in 1996, breaking the previous low of 68.8 percent in March, according to Kyodo News, citing the Japan Petrochemical Industry Association.
Ethylene output in April also declined 37.1 percent compared with a year earlier, reflecting worsening supply constraints across the sector.
Naphtha shipments from the Middle East, traditionally Japan’s main source of supply, have become increasingly difficult to secure. In response, major chemical producers have turned to alternative suppliers within Japan and other regions.
However, the shift has driven up procurement costs, placing additional pressure on downstream industries and contributing to higher prices for consumer goods in domestic markets.
Japan, which relies on imports for most of its energy and raw materials, has historically sourced about 80 percent of its naphtha from the Middle East.
Ethylene is a key petrochemical feedstock used in producing plastics, synthetic fibers, detergents, and paints, making its supply disruption significant for multiple industrial sectors.