In March, the operating rate of Japan's ethylene plant fell to 68.6%, reaching a historical low.

The Japan Petroleum Chemical Industry Association announced on Thursday that due to expected disruptions in raw material procurement and planned maintenance, the operating rate of ethylene plants in Japan in March has dropped to 68.6%, reaching a historic low. Japan currently has 12 ethylene production units that use naphtha as raw material for cracking, producing basic chemical materials such as ethylene and propylene. These materials can be processed into intermediate products such as resins, which are widely used in the manufacture of various end products. Approximately 40% of Japan's naphtha is imported from the Middle East, and 95% of the crude oil needed for domestic refining also relies on supply from the Middle East. Domestic refining capacity can meet about 40% of Japan's naphtha demand. Currently, the shipping blockade in the Strait of Hormuz has severely hindered Japan's raw material procurement work. A representative from the Japan Petroleum Chemical Industry Association stated that due to uncertainties in naphtha supply and the high cost of starting and stopping cracking units, Japanese chemical companies are actively reducing operating loads and maintaining low production rates to ensure the stability of the overall supply chain.